Alcohol, EU – Baltic States, Financial Services, Markets and Companies, Taxation

According to the Finnish government's program, additional tax revenues of 50 mln euros will be generated from alcohol sales during the government's term of office.  

Decisions regarding the increase in excise duty should be taken rapidly in order for them to take effect early next year. The Finnish government did not raise the excise duties last year, and the government's program does not provide a detailed schedule for the increase.

Changes in the field will be made taking into consideration the amount of alcohol Finns bring back home from other states, according to the Finnish government's program. Due to travel restrictions caused by the coronavirus, said amounts are virtually non-existent.

In July last year, Estonia lowered its excise duty rates on alcohol 25 % to curb cross-border trade with Latvia. The prices of beer, cider and Long Drink declined approximately by two euros per crate as a result.

Alcohol purchased from abroad accounted for close to 14% of Finns' total expenditures on alcohol last year. A large share of this amount is brought from Estonia, and the volume of alcohol purchased from Latvia has also grown over the last two years.

Imre Polli, head of the alcohol retailer Superalko, told STT news that sales figures in Estonia have risen to earlier levels after the excise duty cuts, having previously been in decline for several years as a result of the excise tax hike in Estonia in 2017.

Superalko operates 30 stores in Estonia and also some in Latvia.

Last year, Finns brought back home more light alcoholic beverages and less strong alcohol, it appears from a report by the Finnish National Institute for Health and Welfare. The number of passengers importing alcohol and the average number of liters brought back remained unchanged.

Translated into 100% alcohol by volume, the amount of alcohol brought back by Finns from abroad declined 12.4%. In liters, however, the volumes increased 1.5%.

As a result of spring travel restriction, hardly any alcohol was imported to Finland by passengers. When the restrictions were lifted, Finns went back to buying alcohol from Estonia, but their numbers have dropped significantly. In June, only one-third of the number of Finnish nationals visited Estonia compared with the same month last year.

Sales figures at the Superalko store situated at the Port of Tallinn are comparable to those of last summer, according to Poll.

Sales bounced back to ordinary levels after the Finnish-Estonian border was reopened in June. In mid-June, the quarantine requirement upon arrival in Finland from Estonia was lifted, and the number of customers in Superalko has since increased.

Superalko sales declined 20 to 30% during virus-related restrictions, Poll said.