Alcohol, Estonia, Legislation, Markets and Companies, Taxation

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 12:46

Liviko: Estonian government´s unpredictable alcohol excise policy harms industry

Juhan Tere, BC, Tallinn, 26.01.2015.Print version
Janek Kalvi – Chairman of the Board of Estonia´s largest alcohol production company AS Liviko – claims that government´s unpredictable changes of alocohol excise tax have put alcohol industry in a tough spot.

„As alcohol producers, the base for our long term forecast was a 5% raise in the next four years. The current goverment has replaced this with a new long term forecast, which meant a 15% or threefold excise raise this year and a 10% or twofold raise in the next three years. This means that in very short time we had to accept the second long term forecast which differs significantly from the initial one. Every enterpreneur would presume a serious discussion preceding to such major changes, not statements referring to „wrong management decisions“ concerning situations which the goverment officials are dictating one-sidedly,“ says Kalvi.

 

 „Estonia’s alcohol producers have been shut out from the discussion concerning excise tax for a longer period of time. Even minor proposals and simple changes to policies which would help the industry significantly are dismissed absently by goverment officials. The current alcohol politics have directly harmed the alcohol producer’s ability to compete on local markets and forced Estonia’s biggest and oldest alcohol producer to lay off 18 workers and reduce its production by a third for the whole first quarter of 2015,“ Kalvi said.

 

According to Kalvi, questions concerning the health risks of alcohol are not a matter of this discussion. Liviko agrees with the Ministry of Finance and the whole society that the measures against alcohol abuse should be taken seriously. „Choosing to lead the debate to health risks of alcohol instead of a real discussion about taxes fall to the level of slander and populism and do not measure up to the level of a reliable goverment institution,“ Kalvi said.

 

Estonia increased the excise tax of alcohol by 15% this year which lead to discussion between the Ministry of Finance Customs and Excise Policy Department Head Marek Uusküla and AS Liviko. Uusküla claimed in ministrys blog that the increase of alcohol excise rates were known for years and they are meant to protect people´s health. He also said that laying off workers was a result of risks taken by Liviko not the result of state´s activities.   






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