[Opinion] Tax Burden on Drinkers

The name “Manhattan” in New York came from “Mahna Ha Ta,” an Indian word meaning a land of drinkers. Native Indians treated Italian explorer Jovanni Da Verajano with their traditional liquor when he came to New York in 1524. The hosts and the guest all get tipsy afterwards and called the place a land of drinkers. We are also living a “Mahna Ha Ta.” Just think about how much alcohol we consume every year – we drink about 8,449 large Soju bottles of alcoholic drink a year. This translates into that every one of Koreans including infants consumes 180 bottles, or every adult 278 bottles.

▷It’s not just about how much we drink, however. It’s also about how we drink. We drink too much. According to a recent report, 60% of the drinking population are habitual heavy drinkers, and 20% have developed liver and stomach diseases due to excessive drinking. There are reportedly 2 million people out there showing symptoms of addiction. Damage is also done to the national economy. Some 16 trillion won, 10% of the national budget, is being wasted as people get sick and have hard times concentrating on work. Then how we can learn to become modest drinkers. Raising prices and launching anti-drinking campaigns might be effective as with the case of smoking.

▷In fact, the government raised the additional tax charge imposed on tobacco sales from 2 won to 150 won in February as a part of its effort to curb the unhealthy activity. And Lee Ju-il, a famous comedian and used-to-be heavy drinker, began to appear in a TV ad, saying, “Smoking makes you happy? But it’s poison. I used to smoke two packs of cigarettes a day. Now I just wish I had known it better.” It was a compelling scene that the terminally-ill comedian, who died of lung cancer just yesterday, asked people to stop drinking.

▷Some suggest that the government also impose an additional tax charge on drinking. And the government is considering imposing 5% of the sale price to create a public fund with collected money, which will be used to help alcohol addicts. It is like catching two birds with a stone – using the money for public good while curbing liquor consumption. It sounds just right considering all those ill effects of drinking. But I wonder how many people will actually cut down on drinking even if the additional tax charge is imposed. The special tax will deal a blow not only to liquor and tobacco sales but also to fiscal principles. The government has already been criticized for the lack of sound fiscal policies, collecting more than 100 special taxes from people. It is a risky idea that the government grows dependent on the special tax money it is allowed to spend without consulting with Congress.