Estonia: Alcohol excise receipts €101 million below budget

Alcohol excise duty receipts in 2018 totalled 4.6%, or €10 million euros more than during the previous year, but still fell 32.1%, or €101 million, below budget. The main reason for the lower than expected receipts was the planned elimination of excise duties in 2019, which came to focus during the handling of the 2018 budget.

As a planned excise duty hike was cancelled following the adoption of the state budget, alcohol producers and sellers did not stock up on alcohol prior to the new year; however, the prognosis on which the state budget was based had accounted for it. Thus, the alcohol excise duty collected was lower by €40 million than projected. In terms of alcohol excise duty, the previous year was complicated, as tax receipts were affected by several amendments to legislation which had not been accounted for during the budget prognosis. Several changes also occurred in consumer behavior, consumption habits and cross-border trade.

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