The Ministry of Finance reports that the retail prices of alcoholic beverages will increase by an average of five per cent in Finland in 2018.
The Finnish government presented its alcohol tax bill on Thursday, proposing that the excise duties on alcoholic beverages be raised by an average of ten per cent. The increase will apply to all alcoholic beverages but weighted slightly towards beverages with a lower alcohol content.
The duty levied on beers will be raised by 10.6 per cent and that on ciders, long drinks and other mild alcoholic beverages produced by fermentation by 12.7 per cent. The duty on so-called intermediate products – beverages not produced by fermentation with a maximum alcohol content of 22 per cent – will be raised by 9.5 per cent, according to the proposal.
The excise duty on strong alcoholic beverages, in turn, will increase by 4.8 per cent.
Excise duties are indirect taxes levied on the consumption of specific products not only to generate tax revenues but also to promote objectives in the fields of energy, environmental, and health and social policy.
The Finnish government decided to raise the excise duties on alcoholic beverages in its recent budget session to offset the impact on income tax concessions on overall tax revenues. The increases are estimated to generate 100 million euros in annual tax revenues.
Aleksi Teivainen – HT
Photo: Roni Rekomaa – Lehtikuva
Source: Uusi Suomi