Mayor: Alcohol sale in Latvia's Valka has fallen less than expected since Estonian tax cut

RIGA – After Estonia's decision to reduce its excise tax on alcohol, alcohol sales in the border town of Valka have fallen, but not as dramatically as initially expected, Valka Mayor Vents Krauklis told Latvian Radio on Wednesday morning.

Krauklis said that alcohol sales have dropped by about ten percent.

According to Krauklis, Estonia's main aim in reducing the excise tax on alcohol was to regain so-called alcohol tourists from Finland, which it has likely been successful in achieving. He said that in Valka, too, alcohol tourists from the whole of Scandinavia can be observed. "If initially most of these tourists came from Estonia and less from Finland, then now we are seeing such tourists from Norway and Sweden as well," Krauklis said.

Krauklis also added that Latvia's decision to reduce its excise duty on strong alcohol was the correct one, and thus there will likely only be a minimal fall in alcohol-related revenue in the national budget.