The Swedish alcohol policy investigator and the Finnish brewing industry think along the same lines
Press release 16 March 2005
The Swedish alcohol policy investigator and the Finnish brewing industry think along the same lines
If Sweden cuts its beer tax, Finland must follow suit
Kent Härstedt, Sweden’s alcohol policy investigator, has proposed that Sweden should lower its beer tax by 30% as from the beginning of 2006. The Swedish policy investigator has settled on the same tax level that has been proposed for years by the Finnish Federation of the Brewing and Soft Drinks Industry.
The Swedish tax on beer with 5% alcohol by volume is now 81 cents per litre. The investigator pro-poses that the new beer tax be 57 cents. The equivalent tax in Finland is currently 97 cents.
The tax cut implemented a year ago in Finland only went halfway in the case of beer. At that time, the tax should have been lowered by 70%, but the tax cut only amounted to 32%. If the Finnish beer tax were halved from its present figure, as proposed by the Finnish Federation of the Brewing and Soft Drinks Industry, the resulting tax would be at the same level as that now proposed by Kent Härstedt.
The Swedish policy investigator recognises the facts: high taxes have already caused significant adverse effects. Private imports from countries with lower taxes – Denmark and Germany – are rising constantly. Half of Sweden’s brewing capacity has been shut down during the past few years. A substantial black market for beverages has emerged in Sweden and crime is on the rise.
If Finland does not lower its beer tax in step with Sweden’s beer tax cuts, Finland’s breweries, retail sector and restaurant businesses will end up in a tougher spot. Even now, the beer tax in Sweden is lower than in Finland.
Alcohol tax increases in Estonia have no effect
If Estonia were to increase its beer tax by 5% annually over the next 3 years, the tax on beer with 5% alcohol by volume would rise from 18 to 20.8 cents per litre: a total of 2.8 cents.
Estonia could increase its beer tax by 5% each year for the next 35 years before it would be at the same level as Finland’s current beer tax.
Additional information:
Managing Director Timo Jaatinen, tel. +358 (0)9 1488 71
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, Nokian Panimo Oy, Olvi Oyj 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
