Wednesday, July 28, 2004
Finland's Alcohol Tax Cut Update
Vice Squad can't just let this one alone, it seems. Finland's alcohol tax revenues have been falling since it cut its taxes some 30 to 40 percent at the beginning of March -- while sales at the state alcohol stores are up, the increase does not offset the decreased tax revenue per sale. (Imports from Estonia are presumably way up, too.) A majority of Finns, it seems, supports the lower alcohol taxes, though a significant minority thinks that the price of alcohol is now too low. [Here's another news story on the revenue fall.]
Here's a Vice Squad post on the Finnish situation as of early June; Sweden has not cut its alcohol taxes, but its tax revenues are way down, as Vice Squad mentioned last week. So with the new EU rules regarding personal imports, it looks as if high tax countries will see their alcohol tax revenues fall whether or not they choose to lower their alcohol levies.