Finnish consumers demand lowering of beer tax closer to the European level
Press release 19 August 2003
36,558 Finns sign petition Finnish consumers demand lowering of beer tax closer to the European level
In June and July the Federation of the Brewing and Soft Drinks Industry's website offered Finns a chance to express their views on whether beer tax should be lowered in Finland. A total of 48,463 votes were cast, with 94% saying Yes and 6% No. Although consumers could vote anonymously, 36,558 Finns wanted to add their names to a petition addressed to the Finnish Government. This undoubtedly reflects Finns' opinion of beer taxes. The number of names is significant. Finnish consumers want to be able to enjoy good beer bought in Finland at prices which are competitive compared to the European level.
The Federation of the Brewing and Soft Drinks Industry has called for beer tax to be lowered by 70%. This demand is based on a consumer survey which showed that a price cut of a little over 30% would be sufficient to prevent an increase in private imports from Estonia or other EU countries when rules on private imports are relaxed and new members join the European Union on 1 May 2004. Beer tax is presently eight times higher in Finland than in Estonia, and because of this beer costs three times as much in Finland on average.
The Federation of the Brewing and Soft Drinks Industry is glad that state authorities have finally taken steps to bring beer tax closer to the European level. The proposed 30% tax cut would not even bring beer tax or prices in Finland to the level in Sweden, however, much less the Baltic countries which are about to join the EU. Beer tax in Latvia is even lower than in Estonia. An insufficient tax cut is a poor solution for employment and the state budget. Finnish consumers will ultimately decide where beer is bought.
The Ministry of Social Affairs and Health has tried to downplay the amount of private beer imports and has presented incorrect information on the price of beer in Finland and Estonia. The elimination of the 20-hour rule will decisively facilitate private imports. Two travel trolleys each holding 5 cases of beer equal the average annual consumption per person in Finland. Travelers can easily fit 110 litres of beer into a car. Visitors from the Baltic countries will also be able to bring the same amount of beer with them, which is an enticement to engage in street trade. In this respect beer would be more profitable than spirits. In Estonia 110 litres of beer costs less than 10 litres of spirits. This type of grey imports would also pose a threat to young people, since beer would be easier for minors to purchase in unsupervised street trade.
"The people who voted are aware of their rights to equal treatment as EU citizens. Article 93 of the Treaty establishing the European Community still requires the harmonization of excise duties to ensure consumers' equal rights and the functioning of the internal market," says Director Risto Saarinen of the Federation of the Brewing and Soft Drinks Industry.
The petition will be delivered to the Finnish Government today. The Federation of the Brewing and Soft Drinks Industry hopes that citizens' opinion will influence decision-making when the Government finalizes the state budget.
Images
Additional information:
Managing Director Risto Saarinen, Federation of the Brewing and Soft Drinks Industry, tel. +358 9 1488 71 (switchboard)
The Federation of the Brewing and Soft Drinks Industry promotes the interests of producers of beer, cider, long drinks, soft drinks and mineral waters in Finland. Its members are Oy Hartwall Ab, Olvi Oyj, Pirkanmaan Uusi Panimo - PUP Oy and Oy Sinebrychoff Ab. The Federation of the Brewing and Soft Drinks Industry operates in connection with the Finnish Food and Drink Industries' Federation and is among the three largest industries in the food and drink branch in terms of the value of production.
