Alcohol, Estonia, Industry, Markets and Companies, Taxation
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Friday, 29.03.2024, 11:16
Estonian industry body calls for lowering excise duty on strong, low-alcohol beverages
The association, however, does not support the proposal by
the Estonian Reform Party to reinstate the excise duty levels of a year and a
half ago, finding that this will not significantly influence cross-border
trade.
Triin Kutberg, managing director of the association said
that it was the high excise duty on strong alcoholic beverages that spurred on
the cross-border trade between Estonia and Latvia and by just lowering the
excise duty on low-alcohol beverages, cross-border trade would continue.
Kutberg said that by requesting tax peace, alcohol producers
do not wish to obtain a privileged status, rather than just be treated equally,
have a chance to plan their future and return to their normal business plan
cycle.
The bill initiated by the opposition Reform Party seeks to
return excise duty levels to what they were in February 2017. The Association
of Alcohol Producers and Importers, however, estimates that with regard to the
state budget, the somewhat higher market volume of beer products would not
compensate the drop in excise duty levels.
"The Latvian alcohol policy pursues raising excise duty
on alcohol in the coming two years, which will also presumably slow down
cross-border trade. The association estimates that cross-border trade would be
significantly inhibited if excise duty rates on all alcoholic beverages were
lowered by 19%, as a result of which, the rates would be the same in Estonia
and Latvia by 2020," Kutberg said.
The Estonian Association of Alcohol Producers and Importers
includes 13 businesses: AS Liviko, Altia Eesti AS, Pernod Ricard Estonia OU, AS
Prike, Tridens AS, MOE OU, Estonian Spirit OU, AS Remedia, Amber Distribution
OU, Dunker Estonia OU, AS Avallone, AS Coca-Cola HBC Estonia and Brown-Forman
Netherlands B.V.