The Finnish prime minister-elect has welcomed an announcement that Estonia intends to increase its alcohol excise tax.
Estonian Prime Minister Andrus Ansip said the state tax on both alcohol and tobacco would increase in 2008. The current low excise is a key factor in attracting Finnish tourists to Estonia.
However Finland's acting prime minister Matti Vanhanen, who is currently negotiating to form a governing coalition, said his country may also increase its excise tax as a result of the Estonian decision.
Estonia's excise on alcohol plays a key factor in determining the Finnish policy, Vanhanen told the business daily newspaper Kauppalehti.
