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A return on investment analysis for the 2017 increase in alcohol excise taxation in Lithuania.

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Title: A return on investment analysis for the 2017 increase in alcohol excise taxation in Lithuania.
Authors: Rehm, Jürgen, Rovira, Pol, Hassan, Ahmed S., de Oliveira, Claire, Lange, Shannon, Thompson, Mark J., Tamutienė, Ilona, Liutkutė‐Gumarov, Vaida, Galkus, Lukas, Štelemėkas, Mindaugas
Source: Addiction. Oct2025, Vol. 120 Issue 10, p2094-2104. 11p.
Subjects: Taxation economics, Liquor laws, Mortality, Child welfare, Risk assessment, Alcoholic beverages, Labor productivity, Research funding, Health policy, Hospital care, Interviewing, Cost benefit analysis, Social perception, Descriptive statistics, Public health, Alcohol drinking, Confidence intervals, Medical care costs, Wines
Geographic Terms: Lithuania
Abstract: Aims: To conduct a return on investment analysis of Lithuania's 2017 increase in alcohol excise taxation of 112% for beer, 111% for wine, and 23% for ethyl alcohol (spirits), resulting in a marked decrease in alcohol affordability. Methods: Economic analyses based on costs of the increased taxation and economic benefits derived from a societal perspective. Costs were measured according to World Health Organization standards, based on Lithuanian public data. Benefits were derived from the difference of direct (healthcare, childcare, legal) and indirect costs between 12 months pre‐ and post‐enactment of the policy. All costs and benefits were expressed in 2023 Euros (€). Results: Overall, there were net benefits from reductions in productivity losses and increases in tax revenue. Tax revenue increased by 20%, or more than €100 million, in the first‐year post enactment, and productivity losses decreased over the same time period by about €35.3 million (95% confidence interval [CI]: −51.9 to −17.1; proportionally −7%; 95% CI: −11.0% to −4.0%), the latter based on marked reductions in premature mortality in all alcohol‐attributable causes of death. In addition, healthcare costs decreased by about €3.8 million (95% CI: −8.4 to +0.1; proportionally −5%; 95% CI: −11.0% to +0.1%). On the other hand, childcare and legal costs increased compared with the year before, by €5.3 million (no 95% CI possible; proportionally: +7%) and €4.6 million (95% CI: +0.2 to +8.0; proportionally +5%; 95% CI: +0.3 to +8.7%), respectively. The final return on investment was 420 to 1, i.e. for each Euro invested, the return was €420. In the sensitivity analyses, the return on investment varied between 292 to 1 and 530 to 1, meaning that all assumptions resulted in a very positive return. Conclusions: The increase in excise taxation for alcohol on March 1, 2017 in Lithuania created a large return on investment and reduced alcohol‐attributable mortality and hospitalizations. [ABSTRACT FROM AUTHOR]
Copyright of Addiction is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Database: Psychology and Behavioral Sciences Collection
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  Data: A return on investment analysis for the 2017 increase in alcohol excise taxation in Lithuania.
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  Data: <searchLink fieldCode="AR" term="%22Rehm%2C+Jürgen%22">Rehm, Jürgen</searchLink><br /><searchLink fieldCode="AR" term="%22Rovira%2C+Pol%22">Rovira, Pol</searchLink><br /><searchLink fieldCode="AR" term="%22Hassan%2C+Ahmed+S%2E%22">Hassan, Ahmed S.</searchLink><br /><searchLink fieldCode="AR" term="%22de+Oliveira%2C+Claire%22">de Oliveira, Claire</searchLink><br /><searchLink fieldCode="AR" term="%22Lange%2C+Shannon%22">Lange, Shannon</searchLink><br /><searchLink fieldCode="AR" term="%22Thompson%2C+Mark+J%2E%22">Thompson, Mark J.</searchLink><br /><searchLink fieldCode="AR" term="%22Tamutienė%2C+Ilona%22">Tamutienė, Ilona</searchLink><br /><searchLink fieldCode="AR" term="%22Liutkutė‐Gumarov%2C+Vaida%22">Liutkutė‐Gumarov, Vaida</searchLink><br /><searchLink fieldCode="AR" term="%22Galkus%2C+Lukas%22">Galkus, Lukas</searchLink><br /><searchLink fieldCode="AR" term="%22Štelemėkas%2C+Mindaugas%22">Štelemėkas, Mindaugas</searchLink>
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  Data: <searchLink fieldCode="JN" term="%22Addiction%22">Addiction</searchLink>. Oct2025, Vol. 120 Issue 10, p2094-2104. 11p.
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  Label: Geographic Terms
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  Data: <searchLink fieldCode="DE" term="%22Lithuania%22">Lithuania</searchLink>
– Name: Abstract
  Label: Abstract
  Group: Ab
  Data: Aims: To conduct a return on investment analysis of Lithuania's 2017 increase in alcohol excise taxation of 112% for beer, 111% for wine, and 23% for ethyl alcohol (spirits), resulting in a marked decrease in alcohol affordability. Methods: Economic analyses based on costs of the increased taxation and economic benefits derived from a societal perspective. Costs were measured according to World Health Organization standards, based on Lithuanian public data. Benefits were derived from the difference of direct (healthcare, childcare, legal) and indirect costs between 12 months pre‐ and post‐enactment of the policy. All costs and benefits were expressed in 2023 Euros (€). Results: Overall, there were net benefits from reductions in productivity losses and increases in tax revenue. Tax revenue increased by 20%, or more than €100 million, in the first‐year post enactment, and productivity losses decreased over the same time period by about €35.3 million (95% confidence interval [CI]: −51.9 to −17.1; proportionally −7%; 95% CI: −11.0% to −4.0%), the latter based on marked reductions in premature mortality in all alcohol‐attributable causes of death. In addition, healthcare costs decreased by about €3.8 million (95% CI: −8.4 to +0.1; proportionally −5%; 95% CI: −11.0% to +0.1%). On the other hand, childcare and legal costs increased compared with the year before, by €5.3 million (no 95% CI possible; proportionally: +7%) and €4.6 million (95% CI: +0.2 to +8.0; proportionally +5%; 95% CI: +0.3 to +8.7%), respectively. The final return on investment was 420 to 1, i.e. for each Euro invested, the return was €420. In the sensitivity analyses, the return on investment varied between 292 to 1 and 530 to 1, meaning that all assumptions resulted in a very positive return. Conclusions: The increase in excise taxation for alcohol on March 1, 2017 in Lithuania created a large return on investment and reduced alcohol‐attributable mortality and hospitalizations. [ABSTRACT FROM AUTHOR]
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  Data: <i>Copyright of Addiction is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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RecordInfo BibRecord:
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    Identifiers:
      – Type: doi
        Value: 10.1111/add.70083
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        Text: English
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      – SubjectFull: Mortality
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