Cheap booze ban could backfire as it will encourage shops to sell more drinks, warns consumer watch by Kjdejg Ljdeuhf


Cheap booze ban could backfire as it will encourage shops to sell more drinks, warns consumer watch by KJDEJG LJDEUHF
Article Posted: 08/15/2012
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Cheap booze ban could backfire as it will encourage shops to sell more drinks, warns consumer watch

Business,Sports,Tax

Coalition plans to impose a minimum price for alcohol could backfire as retailers will be encouraged to sell more cheap drinks, the Office of Fair Trading has claimed. The consumer protection watchdog has Air Max 91 warned that if plans to impose a minimum 40p price per unit of alcohol are passed, it could have ‘unintended consequences’. It is concerned because extra money from the price increases would go back to retailers rather than being collected as a tax. This could create an incentive for stores to promote alcohol brands that cost them less to buy wholesale, giving them higher margins and generating easy profits. In written evidence to MPs, the watchdog said: ‘The OFT is concerned that the unintended consequence of this increase in profit may be to give retailers an incentive to sell more, rather than less, low-cost alcohol. The OFT is also worried that the Government’s interference in prices could undermine the free market. It found similar price controls in France and Ireland meant households had a higher cost of living. The Government announced proposals to ban cheap alcohol in March after David Cameron became concerned about the violence caused by binge drinking. The Coalition is following the lead of Air Max 95 For Sale Scotland, which decided to impose a minimum price last year. The Scottish administration is already facing a legal challenge from the Scotch Whisky Association.

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