According to Jaan Härms, a member of the board of the Saku brewery, although the new tax increases are aimed at filling the state coffers, the real effect is the opposite – border trade is picking up again and Estonia is becoming an expensive tourist destination, writes dv.ee. /nginx/o/2019/01/02/11690458t1h7080.jpg)
Cross-border trade is picking up again. Photo: Mailiis Ollino / Pärnu Postimees
According to Jaan Härms, a member of the board of the Saku brewery, although the new tax increases are aimed at filling the state coffers, the real effect is the opposite – border trade is picking up again and Estonia is becoming an expensive tourist destination, writes dv.ee.
"The beer excise tax in Estonia is already 48% higher than the rate in Latvia. We see that the five percent increase in excise tax, together with other tax changes, has affected consumer behavior – the total sales volume of local beer, from which the state receives excise tax revenue, has decreased by 7%. However, as several years ago, the trend that is unfavorable for the Estonian economy is gaining momentum again – the growth of cross-border trade. In the first five months of 2024, 30% more beer was sold in Latvian border stores than in the same period last year," Härms noted.
Read more at dv.ee.
