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Home - Monday 1.3.2004
Convoys of trucks bring cheaper alcoholic beverages to thirsty Finns

The unprecedented decline in the tax on alcohol, which took effect in Finland on Monday, brought massive convoys of trucks
to Finnish roads late Sunday night in an effort to help retail outlets replenish their shelves with the cheaper beverages.
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Grocery stores had let their supplies of medium-strength beer and cider diminish, and state monopoly Alko stores had been
running low on stronger drink, waiting for the lower taxes to take effect before restocking.
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At midnight the first lorries of beer left the Koff brewery in Kerava to the sound of applause from workers on the night
shift. By half past twelve the first cases of cheaper beer were being unloaded at a wholesale warehouse in nearby Vantaa.
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Meanwhile, stronger spirits were being loaded onto trucks at the Altia distillery at Rajamäki. A total of half a million
litres of various alcoholic beverages are to be dispatched from the Rajamäki plant on Monday, and more than six million litres
of drinks of different types will be moving around on the country's highways on Monday.
The massive operation is expected to continue until the middle of the week. The unusual spectacle was prompted by the cut in Finland's alcohol taxes, which
have traditionally been kept high to discourage excess consumption.
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The tax cut was enacted two months after restrictions on personal imports of alcoholic beverages from other EU countries
expired.
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The new regulations have already led to an increase in personal imports from Germany, which is presently the nearest EU member
state with significantly lower alcohol prices than Finland. However, officials have been especially concerned about a potential
rush of personal imports of alcohol from nearby Estonia when that country joins the European Union in May.
The tax on strong spirits, which were the most heavily taxed, went down the most - by 44%. For instance, a 70 cl bottle of Koskenkorva grain spirits,
which used to cost EUR 14.35, has gone down to just EUR 9.20.
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The tax cut on fortified wines such as sherries and vermouths has dropped by 40%, and the tax on beer is going down by 32%.
A bottle of ordinary domestic medium-strength beer, which still cost EUR 1.24 during the weekend, is going for just EUR 1.07
today.
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The smallest change is in table wines, where the tax cut is just 10%.
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Restaurants and bars will decide whether or not to pass the savings of the tax cuts on to their customers. If they do, the
price of a shot of hard liquor should go down by 41 cents, and a half-litre mug of beer should come down by 25 cents. The
effect on a glass of wine would be just three cents.
To mitigate the problems likely to result from the lower prices, the government is launching a massive campaign aimed at reducing the harm caused
by drinking.
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The National Research and Development Centre for Welfare and Health (STAKES) estimates that the tax cut and the increase
in personal imports could lead to an additional 600 alcohol-related deaths annually, in addition to last year's approximately
3,000.
- Previously in HS International Edition:
Retailers allow liquor stocks to run low in wait for alcohol tax reduction (19.2.2004)
Sweden not to follow Finlands lead on alcohol policy (8.1.2004)
EU alcohol import quotas lifted - no big rush yet (2.1.2004)
Special quotas for alcohol and tobacco imports from other EU countries to be lifted January 1 (22.12.2003)
Tax cuts lead to domino effect in Nordic booze tourism (7.10.2004)
State budget to bring sharp cuts to price of alcohol (21.8.2003)
Tax on strong spirits set to go down more than 40% - proposed beer tax cut just 32% (20.8.2003)
Finnish alcohol consumption second-lowest in EU (17.6.2003)
Experts at seminar agree on need to lower alcohol prices (23.5.2003)
EU Commission: Finland's alcohol import restrictions will end in 2004 (12.3.2003)
The Finnish national myth of reckless drinking (30.10.2001)
Helsingin Sanomat
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