Rapid wage growth has increased alcohol consumption | Estonia

In recent years, alcohol consumption has increased in Estonia and the Ministry of Social Affairs explains this, among other things, by the fact that wages are growing faster than the price of alcohol.

Alcohol consumption had been declining for a long time until 2018, said Brigitta Õunmaa, advisor to the Department of Public Health of the Ministry of Social Affairs. Since 2019, alcohol consumption has increased again and with it, unfortunately, also deaths directly caused by alcohol.

“Last year there were 753. In 2017 it was almost half. The increase in deaths was actually much more marked than the increase in total consumption,” Úunmaa explained.

One reason is that the price of alcohol has not increased at the same pace as other prices and wages, Health Minister Riina Sikkut said.

“If ten years ago you could buy 60 bottles of vodka with a monthly salary, now you can buy 90,” Sikkut gave an example.

For this reason it was agreed in the state budget strategy that in the coming years the excise tax on alcohol will increase by 5% every year, Sikkut explained. But this is a modest and flat increase, he added.

“This does not guarantee that we will return to the situation of ten years ago, but it prevents alcohol from becoming increasingly cheaper, given the increase in the cost of living, with a monthly salary you can buy more litres.”

For comparison, Latvia has just decided to increase the excise tax on alcohol. The excise duty on alcohol has increased by 8% and on soft drinks by up to 20%. In Finland the price per liter of many alcoholic drinks is already almost double that in Estonia.

The excise tax on alcohol may be discussed again at the end of next summer, when the new state budget is discussed, Sikkut said.

“Past experience says that sudden changes would not be something that would be acceptable in society or that could be done without setbacks. I think a slow annual increase in excise taxes on alcohol is the most reasonable approach,” he said Sikkut.

Next year, the Ministry of Social Affairs plans to make supervision more efficient. Currently, minors can often still buy alcohol, because shops do not require ID, and alcohol is also sold to drunk people, even though it is prohibited by law, Úunmaa gave examples. Price is only part of the availability of alcohol, she added.

“What increased physical availability, especially in recent years, was the remote sale of alcohol. In fact, today we no longer need a physical store to buy alcohol. In most regions of Estonia, couriers they still deliver to your door,” Õunmaa said.

The ministry plans to review Estonia’s alcohol policy more broadly. You could also consider whether petrol stations should sell alcohol or how close shops selling alcohol could be located.

2023-12-11 13:18:00
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