"I have become very concerned, especially in recent days, by the view that excise duty is only seen as a form of budget revenue. Of course, it is also intended to curb consumption. Budget revenue is not the only criterion for setting these rates," Ligi said at a government press conference.

Ligi also commented on recent concerns regarding possible increases in border trade. "This panic about border trade has now resurfaced. Take it easy. Excise duty has a dual purpose. And there is sometimes a trade-off between limiting consumption and raising taxes. If consumption falls, it does not necessarily mean that excise policy has failed. Our aim is not to fight border trade, but to ensure an optimal level of excise duty whereby consumption is limited and budget revenue is still collected," Ligi said.

On Wednesday, Estonian Minister of Health Riina Sikkut (SDE) said on Vikerraadio that alcohol excise duty should be linked to inflation.

"This logic that the health minister has spoken about here, that it should be synchronized with inflation, is logical in the abstract. But it is precisely the fact that if everyone does not behave in the same way, then we will not be restricting alcohol, but losing consumers to Latvia and Finland. We have to be very careful with automatic indexations," Ligi said.

"But yes, our purchasing power in terms of bottles and crates of beer has increased very rapidly and in any case I am in favor of higher excise duty on alcohol. And I hope that the Riigikogu will not make superficial decisions based solely on the idea that maybe a few kopecks will go to Latvia," said the finance minister.

According to Ligi, the excise duty cannot be so high so as to make a trip to Latvia to buy vodka worthwhile.

Sikkut, who also spoke at the same press conference, said she agreed with Ligi. "The current numbers do not confirm that will be an increase in border trade. Around three percent of the people who went to Latvia last year specifically for alcohol are probably residents of the border areas," Sikkut said.

Sikkut added that the Ministry of Social Affairs is aware Latvia also wants to raise alcohol excise duties. "We will try to keep more or less the same pace."

According to Sikkut, the same amount of excise duties will be collected, regardless of whether the rate is lower or higher. "We can see that whether you lower it by a quarter or raise it by 50 percent, more or less the same amount will still be collected. We will collect between €230 million and €250 million in excise duty, regardless of what we do with the excise rate," Sikkut said.

"Undoubtedly, from a health perspective, it is not necessary to drink as much as possible and pay a low excise duty on it, but to drink less and pay a higher excise duty. However, that the excise duty level ought to be such that it does not encourage excessive border trade," Sikkut stressed.

Ligi added that the same rule applies to the economy and the payment of taxes. "A drunken taxpayer is a poor taxpayer," Ligi said.

"I don't agree with those who talk about a free market economy for alcohol. There is, however, the problem of stores surviving. If it is easy in Tallinn, it is the turnover of stores in the countryside that keeps them alive, and if there is no turnover.... This is a very multifaceted problem unfortunately. Even though visually you could think that there is also a big alcohol problem in countryside stores," Ligi added.

Up until Christmas, the Ministry of Social Affairs is awaiting comments on a policy document containing a series of proposals regarding how to reduce alcohol consumption by around 20 percent over the next  ten years. This would mean each person over 15 years of age would no longer drink 11 liters of alcohol per year, but just under nine liters.

The document also proposes linking increases in alcohol excise duty to inflation.

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