Estonia's health minister wants to tie alcohol excise duty to inflation
According to Minister of Health Riina Sikkut (SDE), the specific model for calculating alcohol excise duty based on inflation is still under consideration and will be included in the ministry's forthcoming alcohol strategy.
The Ministry of Social Affairs is accepting feedback until Christmas on a document titled "Development Directions for Reducing Alcohol Consumption 2025-2035."
The document proposes several measures to reduce alcohol consumption by around 20 percent over the next decade, aiming to lower the per capita alcohol consumption for individuals aged 15 and over from 11 liters to slightly under 9 liters of pure alcohol annually.
One proposal in the document suggests linking increases in alcohol excise duty to inflation.
"It is important that the increase in alcohol excise duty does not depend on single decisions – for example, a situation where one government agrees to raise excise duty, while another decides to lower it. We need to recognize that this is a tax rate that evolves over time, ensuring that harmful goods like alcohol do not become relatively cheaper," Minister of Health Riina Sikkut said on Vikerraadio.
Sikkut highlighted that data shows food prices are steadily rising, but alcohol prices have not followed the same trend. "We are now proposing that alcohol excise duty should increase consistently," she said.
The exact formula – how much the increase would exceed the consumer price index, the pace of adjustments and who determines the index – needs to be discussed with stakeholders, Sikkut noted.
The strategy also includes ideas such as limiting remote alcohol sales and adjusting evening hours for alcohol purchases. "We are not proposing specific hours yet, but we recognize these as methods used in countries like Latvia and Lithuania. While societal debate on this has not started here, we see it as something worth exploring," Sikkut added.
Another key focus is ensuring minors cannot purchase alcohol, whether in entertainment venues, through online sales or via parcel machines. Sikkut emphasized that these alternative sales channels currently make it too easy for minors to obtain alcohol.
"These are areas where minors can access alcohol very easily," she said.
At the same time, youth alcohol consumption is showing a positive trend, with a continued decline in the proportion of school-aged youth who have tried alcohol or gotten drunk. Among 14-18-year-olds, 72 percent have tried alcohol in their lifetime and 43 percent have been drunk at least once.
Sikkut in favor of time restrictions on sale of alcohol
Latvia is planning to end alcohol sales at 8 p.m. on weekdays and at 6 p.m. on weekends. In Lithuania, Sunday alcohol sales are allowed only until 3 p.m.
Now the question arises: should Estonia adopt a similar approach to Latvia's, or would different time restrictions be more suitable for Estonia? "This is a relatively simple measure that impacts a broad segment of people, including those with alcohol-related problems or dependencies who might otherwise go out late on a Sunday evening to buy beer, as well as children and teenagers who might be out making plans during summer or school breaks," Sikkut said.
She noted that Lithuania's data indicates immediate benefits from curtailing Sunday alcohol sales to 3 p.m. "On Mondays, more people go to work, and there are fewer cases of heart attacks and strokes," she said, listing the advantages.
Sikkut believes there is broad support in Estonia for restricting children's access to alcohol. "In a debate on alcohol policy, where different political parties presented their positions, the largest consensus was on limiting remote alcohol sales. Understandably, Estonians are hesitant about imposing restrictions on adults, but this is about ensuring children cannot order alcohol via apps," Sikkut said. She personally supports shortening alcohol sales hours on Sundays and suggested the idea of limiting evening sales during the week.
Another pressing issue is the proximity of alcohol stores to schools and kindergartens. "The fact that liquor stores are located close to schools and playgrounds is concerning," Sikkut said. Currently, municipalities have no way of knowing when an alcohol store is opened near a school, as no special permits are required. "As a recent investigative experiment by Levila showed, anyone can open an alcohol store in just a few days without needing additional permits or giving advance notice," she explained.
The Ministry of the Interior has proposed introducing electronic monitoring devices for individuals with alcohol-related behavioral problems who have violated the law. "Our penalties vary – some individuals are assigned community service, while others are granted conditional release with an ankle monitor. The prison population is indeed decreasing, and the Ministry of the Interior believes allowing these individuals to participate in society yields better results. This would also extend to those struggling with alcohol consumption, as a significant portion of crimes and accidents in our criminal records are tied to alcohol use," Sikkut said.
Sikkut also addressed discussions around requiring health certificates and potential alcohol consumption tests for certain activities. "There has been debate over whether people should undergo tests showing they haven't consumed alcohol in, say, three months," she noted.
According to the OECD, 10 percent of Estonian men have an alcohol use disorder. A concerning trend is the rise in alcohol consumption among young women, partly driven by more frequent wine drinking. Deaths directly caused by alcohol increased alongside overall alcohol consumption between 2019 and 2022. In 2023, Estonia recorded 627 deaths from alcohol-related illnesses, 126 fewer than in 2022 (753 deaths). Additionally, there were 89 deaths in 2023 caused by alcohol-related injuries.
Despite these issues, physical access to alcohol in Estonia continues to grow. As of May 2024, there are 9,614 alcohol sales locations in the country, compared to 9,374 in 2023.
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Editor: Mari Peegel, Marcus Turovski