The proposed changes would amend Section 244D-4 of the Hawaii Revised Statutes to increase per-wine-gallon taxes: distilled spirits would rise to $7.95, sparkling wine to $2.82, and still wine to $1.84, among others. This tax increase is intended to create a fiscal deterrent against excessive consumption while also generating revenue that could fund substance abuse prevention and treatment services within the health department, which currently has limited financial resources for such initiatives.
Senate Bill 1382, introduced in the Hawaii Legislature, seeks to address the public health concerns associated with excessive alcohol consumption by increasing the taxation on various alcoholic beverages. The legislation acknowledges significant short- and long-term health risks linked to alcohol use, including injuries, chronic diseases, and mental health issues. In addition to the health impacts, the bill highlights the economic burden excessive drinking places on the state, estimating high financial costs related to healthcare and lost productivity, which amount to approximately $937,400,000.
While proponents argue that increasing alcohol prices could significantly reduce consumption and related health issues, there is potential for contention among various stakeholders, including local businesses that may stand to lose revenue from higher prices. Concerns have also been outlined regarding the effectiveness of tax increases in curbing alcohol consumption and whether they could instead lead to illicit trade practices. Thus, the bill may prompt debates on balancing public health interests against economic impacts on the local economy.