Alcohol Price Hike Must Exceed Salary Rise, Analyst Says (1)

Photo: Postimees/Scanpix
6/18/2014 9:20 AM
Category: Economy

The salary increase exceeded the increase in alcohol prices by nearly 3 percent last year, but alcohol excise needs to increase quicker to curb consumption, Marje Josing, head of the Institute of Economic Research, said.

The survey on alcohol consumption and alcohol policies presented at the Ministry of Social Affairs that half of people surveyed are in favor of stricter policies, ERR radio news reported Tuesday.

The majority of respondents also think that Estonians should reduce their alcohol intake.

Josing proposed that the increase in alcohol tax should exceed the rise of average salary, although contrary to fears, the consumption of alcohol was actually down by 2.6 percent last year. According to her, the tax on alcohol has been hiked over the years to plug various tax gaps without them actually affecting the price the consumer has to pay.

According to the survey, 54 percent thinks Estonians drink too much.


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