Ministries are drafting new legislation around alcohol sales and the Ministry of Social Affairs has put forward several new proposals.

Estonia's national alcohol policy aims to reduce alcohol consumption from 10.9 liters per adult annually in 2023 to to less than 8.7 liters by 2035.

The Ministry of Economic Affairs and Communications (MKM) disagrees with several suggestions, including linking alcohol excise duties with inflation and banning the remote sale of alcohol.

Keldo supports regular reviews of excise rates, but warned that frequent changes would undermine the stability of the tax system.

"We also do not support tying excise rates to inflation in a way that would lead to automatic adjustments based on inflation. Excise rate reviews and adjustments should consider various aspects," the minister added.

Both the World Health Organization (WHO) and the Organization for Economic Cooperation and Development (OECD) have recommended that Estonia raise alcohol excise taxes as part of its strategy to reduce consumption.

The draft also sets goals for reduced the availability of alcohol over time, compliance with sales restrictions, and limiting alcohol advertising's influence on consumption.

Keldo argued that the current legislation already includes sufficient restrictions on alcohol availability, with enforcement being the main issue. "Imposing new restrictions cannot be an end in itself; the focus should first be on assessing how existing measures achieve their goals," he said.

The MKM does not support banning remote alcohol sales but believes the same restrictions should apply as for in-store sales.

Keldo also questioned the rationale behind proposed bans on alcohol sales at gas stations, bathing areas, and near kindergartens or schools, as local governments already have the authority to implement such restrictions.

He stressed that specific bans should be preceded by thorough analysis, including proportionality and competitive impact assessments.

"The MKM cannot support agreeing on such specific actions in a strategy document without prior analysis," he wrote.

He further criticized the document's proposal to minimize and eventually eliminate advertising exposure for all target groups.

"It is unclear what is meant by eliminating exposure to advertising. Furthermore, the MKM does not support a complete ban on alcohol advertising," the minister stated.

Time-limiting sales licenses raise concerns

One proposal suggests introducing a system of time-limited sales licenses for alcohol vendors. However, the MKM noted potential challenges, pointing out that municipalities have indicated such licenses would not resolve enforcement issues.

"We believe this proposal should be framed more broadly in the document, allowing alternatives to be considered, including evaluating the effectiveness and potential challenges of implementing a sales license system," Keldo said.

He also noted that additional regulations would contradict the coalition agreement's aim to reduce bureaucracy.

"It is essential to recognize that introducing a licensing requirement would increase bureaucracy for both businesses and the state, particularly given current fiscal consolidation policies, and would diminish the attractiveness of the business environment," he wrote.

The current alcohol policy "Green Paper" is over a decade old. While Estonia saw a decline in alcohol consumption between 2013 and 2018, it began to rise again in 2019 due to excise duty cuts and the COVID-19 pandemic.

Both the WHO and OECD recommend Estonia increase alcohol excise duties and reduce alcohol availability. The OECD also suggested reducing the density of alcohol retail outlets and limiting advertising.

--

Follow ERR News on Facebook and Twitter and never miss an update!