The Pass-Through of Alcohol Excise Taxes to Prices in OECD Countries

While excise taxes on wine, Cognac, and Liqueur Cointreau are over-shifted to prices, taxes on Gin are exact- or under-shifted. Excise taxes on beer and Scotch whisky are likely over-shifted to prices, but the tax pass-through rates for these beverages are not significantly different from 1 and the study cannot completely rule out exact pass-through of taxes to prices…