Estonian government approves of alcohol excise tax increase

  • 2012-09-06

TALLINN - At its Thursday session, the Estonian government approved the bill of amendments to the alcohol, tobacco, fuel and electricity excise tax law, according to which alcohol excise tax would increase by 5 percent a year till 2016, Public Broadcasting reports.

The change was decided upon in spring with the state budget strategy. The government states that a long-term plan of raising excise tax rates helps producers to plan their activities better.

The government estimated that as the result of raising alcohol excise tax, the state budget's cash-based tax income will increase by 7 million euros next year, 22 million euros in 2014, 40 million euros in 2015 and 60 million euros in 2016.