{"id":110875,"date":"2025-05-07T09:16:02","date_gmt":"2025-05-07T06:16:02","guid":{"rendered":"https:\/\/lsmu.lt\/?p=110875"},"modified":"2025-12-16T16:30:48","modified_gmt":"2025-12-16T14:30:48","slug":"alcohol-tax-benefits","status":"publish","type":"post","link":"https:\/\/lsmu.lt\/en\/alcohol-tax-benefits\/","title":{"rendered":"New Joint CAMH-International Study Finds Major Economic and Health Benefits from Alcohol Tax Increase"},"content":{"rendered":"\n

Findings from major Lithuanian study offer important lessons for Canada as alcohol harms continue to rise.<\/em><\/p>\n\n\n\n

Toronto, May 7, 2025<\/em> \u2014 A new economic analysis shows that Lithuania\u2019s unprecedented 2017 increase in alcohol excise taxation generated a massive return on investment (RoI) and improved public health outcomes, challenging critics who predicted economic harm and offering important insights for Canada\u2019s ongoing alcohol policy discussions.<\/p>\n\n\n\n

Published today in the top journal Addiction<\/em>, the study was a collaborative international effort co-led by Dr. J\u00fcrgen Rehm, Senior Scientist at CAMH\u2019s Institute for Mental Health Policy Research and Dr. Mindaugas \u0160telem\u0117kas, Head of the Health Research Institute at the Lithuanian University of Health Sciences<\/p>\n\n\n\n

Titled A Return on Investment Analysis for the 2017 Increase in Alcohol Excise Taxation in Lithuania,<\/em><\/a> the study found that for every \u20ac1 invested in implementing the tax increases, Lithuania gained an average of \u20ac420 (expressed in 2023 Euros; ~$673 CAD) in economic returns. The findings highlight the powerful role alcohol taxation can play in saving lives, reducing health inequities, and strengthening national economies.<\/p>\n\n\n\n

“Increasing alcohol excise taxes has long been recognized as one of the most effective tools to improve population health,” said Dr. \u0160telem\u0117kas. “Our study shows it can also deliver impressive economic benefits\u2014directly countering arguments often made by the alcohol industry.”<\/p>\n\n\n\n

In 2017, Lithuania enacted sharp excise tax increases: 112 per cent for beer, 111 per cent for wine, and 23 per cent for spirits. Excise taxes are special taxes applied to specific goods like alcohol, and these increases led to average price hikes of 26 per cent, seven per cent, and six per cent respectively. Despite controversy leading up to the policy change, the results were overwhelmingly positive.<\/p>\n\n\n\n

Key findings, adjusted for 2023 inflation rates, from the first year after implementation include:<\/p>\n\n\n\n