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Estonian government hopes to earn 130 mln euros by raising the alcohol excise tax

Juhan Tere, BC, Tallinn, 29.05.2012.Print version
The finance ministry draft law that was sent to other ministries for approval recently and that aims to increase alcohol excise tax in Estonia by 5% a year in 2013–2016 should result in a 130 million euros extra gain for the state budget, LETA/Public Broadcasting reports.

The explanatory note of the bill states clearly that the aim of the bill is to increase state budget income, not reduce alcohol availability, for example, writes LETA.


The state budget's cash-based tax income grows by 7 mln euros in 2013, 22 million in 2014, 40 million in 2015 and 60 million euros in 2016 as the result of the move.


The ministry admits that raising alcohol excise tax can reduce consumption of alcohol. The inflation is forecast to accelerate by 0.12% in 2013-2016 as the result of the excise tax increase.

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