Sin taxes

The high cost of virtue

Britons are cutting back on many vices. Unfortunately, abstinence makes the Treasury grow poorer

See article

Readers' comments



I have to agree with IanBio about legalizing then taxing recreational drugs, though I'd do it gradually with marijuana being the first candidate. This would not only add taxes but reduce the costs of incarceration. If the article is a good indicator of taxes acting as a deterrent, then the tax on these drugs would act as a much more socially-productive deterrent than jail does now.

liberty lee

Smokers actually cost western governments less than non-smokers. Smokers often die early and quickly of heart problems, lung cancer, etc. Non-smokers typically live longer to collect entitlement benefits and die of chronic conditions that require massively expensive medical care such as Alzheimer's or Parkinson's.

From the studies I've seen from Europe and the US, the typical smoker costs government between $125,000 and $150,000 less than the typical non-smoker costs over his/her lifetime.

Economically sensitive governments (like China) have every incentive to encourage their citizens to indulge in unhealthy behavior -- more sin taxes in the coffers and fewer entitlement outlays. OECD countries seem to prefer to be Puritans no matter how costly this choice is....

Lee Nason
New Bedford, Massachusetts

Paulo Sérgio

Is Absolutely Fabulous airing in the United Kingdom? It may be wise for the HM's Government to consider a minor investment in the production in a new series.

But how unexpected is this really, the contradictory stance of governments that rely on sin tax, yet eagerly push for larger warning labels? Tax tea, see if that leads to popular revolt..


Not sure I agree with you about smoking. There may be a substantial reduction in costs treating their ailments on the NHS but have you thought about the cost of pensions for the ex-smokers plus geriatric care? My guess is that they would at least balance the savings.


Perhaps now is the time to quite the €U. It would save the Treasury billions, and import duty could be used to subsidise British exports (this works well for countries with trade deficits, the bigger the deficit the better it works). Britian could then also remove VAT with a lower sales and service tax like they have in Jersey (something like 6%) which would drive the domestic market.

The extra billions in the coffers could easily be made to work, like improving infrastructure, education and the NHS.

Sin taxes are all very well, correct and moral. But waste is the biggest issue the Treasury has to tackle.


Carbonated drinks and fast food are ripe and ready for the obesity tax - and use the money to eliminate employers National Insurance on new employee hires for young people under 25.

Jean Baptiste

'Sin' taxes are a favorite way to get revenue in the Rich countries. A bottle of rum that costs $5.00 in Mexico (in a shop) would cost $22.00 in Canada. Same for wine, scotch, vodka, etc. Since many of us can not affort to pay such steep prices, we are condemned to drink cheap alternatives. Ah, the joy of living in the rich world.


New sin taxes is reasonable, although not likely a sufficient solution to the vulnerable financial atmosphere. Based on this article and the general instability of so many governments world-wide, I would say the "parents" of each country have large unkempt "houses" with too many "children." They lack the capacity to adequately manage the responsibilities of such large societies...


"Sin taxes" have always been a bit of a farce as the revenues raised are not used directly to counter the cost of the sin in question. It is disingenuous to claim that smoking costs the NHS £5billion pounds as smokers more than pay their way. Sin taxes should go straight to the NHS, just as the TV licence goes to paying for TV programming.


Simple solution to the Treasury's problem. New sin taxes. The obvious candidate is to legalise and tax all recreational drugs. The Economist has often pointed out the multiple benefits of doing this - the biggest one for me is that my children would have their first experience of buying drugs from Boots and not a criminal.

Perhaps financial pressure will finally overcome the resistance to this eminently sensible measure.


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