Why higher tax on alcohol?

Have you ever wondered why alcohol is expensive? Despite the price, we indulge in alcohol. Yes, we all know it feels good. Have you ever given thought to tax on alcohol?

Government imposes higher taxes on alcohol because it is a demerit good and tax is a way of revenue for the government. At the same time, there are expenses for the government due to increased alcohol consumption. So in a way, there is a right for the government to levy taxes.

What are the expenses of the government?

1. Health care cost for treating alcohol-related illness.
2. Emerging cost on health and police service for the increasing accidents and violent crime due to overconsumption of alcohol.
3. Accidents at home.
4. People take sick days off work due to hangovers.
5. Cost of rehabilitation of alcohol-addicted people

Happy reading.