Alcohol, Estonia, Legislation, Markets and Companies, Society, Taxation

During the past five years, consumption trends have not changed much, although in the next five years, Government is planning to reduce consumption of alcohol to 8 litres per resident. The principal method chosen for reducing consumption is to increase excise tax on alcohol.

The Institute of Economic Research compiled a survey on alcohol consumption, commissioned by the Ministry of Social Affairs, and the study demonstrated that Estonia is handling illegal alcohol market better than three years ago; currently illicit alcohol accounts for less than 20 per cent of the entire vodka market. However, there is still room to improve the situation, as before the economic boom illegal alcohol accounted for 10 per cent of all alcohol sold in Estonia.

Minister of Health and Labour Rannar Vassiljev stated that pricing policy is the most efficient method in the context of the goal of reducing alcohol consumption.