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Date: November 22, 2024 Fri
Time: 12:05 pm
Time: 12:05 pm
Results for alcohol industry
3 results foundAuthor: Snowdon, Christopher Title: Drinking in the Shadow Economy Summary: Executive summary: • One in ten bottles or cans of beer sold in the UK have not had duty paid on them and there are growing reports of counterfeit spirits being sold by licit and illicit retailers. HMRC seized almost ten million litres of non-duty paid alcohol in 2010/11, a rise of 30 per cent in two years. The UK loses more revenue from the cross-border movement of alcohol than any other EU state. The aim of this paper is to identify the factors that encourage the production, distribution and purchasing of alcohol in the shadow economy. • Unrecorded alcohol encompasses smuggled alcohol, commercially manufactured counterfeit alcohol, domestic brewing and distilling, surrogate alcohol, alcohol fraud and cross-border shopping. Failing to deal with alcohol’s shadow economy threatens not only the public finances, but also public health and public order. Counterfeit spirits and surrogate alcohol frequently contain dangerous levels of methanol, isopropanol and other chemicals which cause toxic hepatitis, blindness and death. Alcohol smuggling and counterfeiting is linked to other illegal activities, including drug smuggling, prostitution, violence, money-laundering and terrorism. • Factors which lead to shadow economic activity include high taxes and social security payments, low tax morale, complex tax systems, low Gross Domestic Product, weak institutions and corruption. Evidence shows that the illicit alcohol market is also closely associated with high taxes, corruption and poverty. The affordability of alcohol appears to be the key determinant behind the supply and demand for smuggled and counterfeit alcohol. Affordability is low in some countries due to low incomes (e.g. Eastern Europe) and in others because of high alcohol duty (e.g. Scandinavia). The price of alcohol in neighbouring markets also influences rates of unofficial consumption. • Demand for alcohol is relatively inelastic and drinkers have a series of options available to them when real prices increase. They can do as the government hopes and drink less, but they can also do any of the following: (1) make savings elsewhere in the household budget, (2) switch from the on-trade to the off-trade, (3) downshift to cheaper drinks, (4) shop abroad, (5) brew or distil their own alcohol, (6) buy counterfeit or smuggled alcohol, and finally (7) buy surrogate alcohol (e.g. methanol, antifreeze, aftershave). The extent to which consumption patterns change depends on personal income and the affordability of alcohol. • Our analysis indicates that the affordability of alcohol does not have a strong effect on how much alcohol is consumed. Once unrecorded alcohol is included in the estimates, it can be seen that countries with the least affordable alcohol have the same per capita alcohol consumption rates as those with the most affordable alcohol. • Alcohol duty provides significant income to European governments, but maximising these revenues carries significant risks in terms of health, crime and secondary poverty. Lessons can be learnt from countries which have low rates of unrecorded alcohol. We conclude that economic prosperity, moderate taxation and minimal corruption are essential for a country to minimise the size the alcohol black market. Without these preconditions, efforts to tackle the illicit alcohol supply through education, deterrence and enforcement are unlikely to succeed. Details: London: Institute of Economic Affairs, 2012. 27p. Source: Internet Resource: IEA Discussion paper no. 43: Accessed June 5, 2013 at: http://www.iea.org.uk/publications/research/drinking-in-the-shadow-economy Year: 2012 Country: United Kingdom URL: http://www.iea.org.uk/publications/research/drinking-in-the-shadow-economy Shelf Number: 128964 Keywords: Alcohol IndustryBusiness CrimesCommercial CrimesFraudIllegal Alcohol SalesShadow EconomyTax Evasion |
Author: Thought Arbitrage Research Institute Title: Illicit Markets - A Threat to Our National Interests. The Alcoholic Beverages Industry Summary: Illicit markets have broad economy-wide effects on trade, investment, employment, innovation, criminality, environment, and most importantly, on the health and safety of the consumers. Over and above, it also has a negative impact on the brand image and loss of revenue for industry and governments. In the alcoholic beverage industry, the industry faces a twin problem. Firstly, the production of alcohol under non-standard conditions which are much more harmful, life threatening and, secondly, the smuggling of these products which escape state taxes and duties applicable to this sector. As alcoholic beverages industry is a state subject, manufacturers have to conform to regulations legislated by each state which vary from state to state and sometimes loopholes in such differences in regulations can fuel illicit trade. Given the thrust on "Make in India"; technology, invention, and innovation will play a key role in India's current economic development. However, counterfeits and fakes will threaten India's growth strategy. Hence, a proactive strategy should be in place to fight this serious menace to public health and safety, and to the state exchequer. This report has estimated the size of the illicit market; its adverse impact on innovation and investment in the alcoholic beverage industry. I am certain that the findings from this report would increase consumer awareness, drive support from policy makers in tax related reforms and step up the industry for greater investment in R&D and encourage innovation. Details: New Delhi: FICCI Cascade, 2016. 86p. Source: Internet Resource: Accessed January 30, 2017 at: http://tari.co.in/wp-content/uploads/2015/07/Alcoholic-Beverages.pdf Year: 2016 Country: India URL: http://tari.co.in/wp-content/uploads/2015/07/Alcoholic-Beverages.pdf Shelf Number: 144933 Keywords: Alcohol IndustryIllicit MarketsIllicit TradeSmuggling of Goods |
Author: Euromonitor International, Title: Size and Shape of the Global Illicit Alcohol Market Summary: Alcoholic beverages are deeply ingrained in most societies worldwide, with global consumption in 2017 generating US$1.6 trillion in legally registered sales1 of 222.8 million hectolitres of pure alcohol ("hectolitres of alcohol equivalent", or hl lae). However, despite the efforts of policy-makers, law enforcement officials, and legitimate alcohol manufacturers, illicit alcoholic beverages still account for a significant share of the total volume of alcohol consumed in many countries. This white paper explores critical issues affecting the problem of illicit alcohol in today's global alcohol industry. To this end, the paper analyses research conducted in 24 countries in Latin America, Africa, and Eastern Europe, and examines the major factors shaping their illicit alcohol markets. Illicit alcohol is prevalent in these countries: Of the 42.3 million hl lae of total alcohol consumed each year, approximately 25.8% is illicit. In other words, nearly 10.9 million hl lae of illicit alcohol is consumed annually in these 24 countries alone. This suggests they represent an effective sample for exploring this important topic. Illicit alcoholic beverages are defined as those not complying with the regulations and taxes in the countries where they are consumed, resulting in serious health risks to consumers, revenue loss, and brand degradation for legitimate manufacturers, as well as reduced tax revenue for governments. These products are responsible for hundreds of cases of death and illness due to accidental methanol intoxication, millions of dollars used to fund other criminal activities, and the fiscal loss of billions of dollars in unpaid taxes. Health risks affect the poorest and most vulnerable consumers by contributing to widening health inequalities. The most significant risks and costs for each country depend on the characteristics of the local market for illicit alcohol. The landscape of illicit alcohol is varied and complex, ranging from homemade artisanal beverages sold without the proper sanitary permits to legitimately branded bottles of alcohol smuggled illegally into a country. However, although market characteristics differ across countries, the problem of illicit alcohol exists in every region, in developed and developing countries, urban and rural areas, and higher-income and lower-income neighbourhoods alike. Governments, businesses, and civil society organizations - all stakeholders with vested interests in curbing illicit trade - have responded to this problem from many angles. The approaches are as varied as the markets themselves, but have often been partial or ineffective, especially due to rapid adaptation of illicit businesses to new regulations and restrictions This white paper analyses and summarises findings that may help stakeholders better understand the illicit alcohol trade. In particular, the paper identifies five themes that are shaping the global illicit alcohol trade and affecting the stakeholder initiatives intended to reduce it. Details: London: Author, 2018. 42p. Source: Internet Resource: Accessed June 24, 2019 at: https://www.tracit.org/uploads/1/0/2/2/102238034/illicit_alcohol__-_white_paper.pdf Year: 2018 Country: International URL: https://www.tracit.org/uploads/1/0/2/2/102238034/illicit_alcohol__-_white_paper.pdf Shelf Number: 156727 Keywords: Alcohol IndustryConsumer FraudIllicit AlcoholIllicit MarketsIllicit ProductsIllicit TradeOrganized Crime |