Alcohol Excise Will Raise Extra 130 Million, Says Ministry
The Finance Ministry has said that its initiative to increase the excise on alcohol would bring in an additional 130 million euros to the national budget.
The bill, currently in process of being approved by the Cabinet, aims to boost government revenue, and not so much to discourage alcohol consumption, by raising the excise by 5 percent annually from 2013 to 2016.
But the brewing industry has been an angry opponent of the tax hike, which the ministry says would increase inflation by 0.12 percent in the three-year period.
Saku Brewery CEO Margus Kastein says the cost of a half-liter bottle of beer, driven up by the tax, will rise by 20 cents over the next four years.
In previous comments to uudised.err.ee, Kastein said: “Consumers are on the edge of what is tolerable and raising the excise duty on alcohol may not be a successful way for the Finance Ministry to increase state budget revenue.”