Alcohol, Estonia, Financial Services, Latvia, Retail, Taxation

International Internet Magazine. Baltic States news & analytics Monday, 21.09.2020, 15:36

Estonia lost EUR 10 mln due to border trade in 2016

BC, Tallinn, 17.01.2017.Print version
Last year Estonia lost 10 mln euros in taxes as a result of low-alchol drinks being brought across the border, the Estonian Breweries Association said LETA/BNS.

According to the association the share of Estonia's beer market was 8 percent and other soft liquor market 13% smaller than in 2015, and respectively 9 mln and 3.4 mln liters less was sold in Estonia.

"The substantial decline of the market does not mean that Estonians drink less, because additional alcohol amounts were brought in from Latvia," chairman of the association Peeter Vork said. He added that in the summer and the second half of the year domestic alcohol sales decreased 10-15%  each month.

According to the association's calculations the state failed to receive around 10.1 million euros in excise duty and VAT last year.

As a result of different hikes in the taxes of soft and hard liquor Estonia is to lose around 150 mln euros of excise duty and VAT, the association said.

Last year excise duty receipts increased by 13.1% on year to 251 mln euros, which is 1.2% more than the government expected.

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