What happened to consumer prices, distributor margins and sales volumes when alcohol tax was removed, and what should we expect if it's reinstated?
When tax was removed previously, **most retailers did not pass savings on to consumers** — prices stayed the same rather than dropping. This suggests that if tax is reinstated, increases will likely be **passed directly to end customers rather than absorbed by distributors**. Members expect distributor margins to remain relatively stable, with the tax burden flowing through to the till price. The actual impact on sales rates remains unclear from available data; members noted this is largely anecdotal consumer observation rather than industry-wide analysis. One member indicated they had a contact with potential insight into the mechanics, though no detailed findings were shared in the discussion.
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