The Plan to Reduce Alcohol Consumption Must Not Be Limited to Increasing Bureaucracy

The Ministry of Social Affairs has developed strategic directions for reducing alcohol consumption in Estonia for the years 2025–2035. The state aims to implement various measures, such as linking alcohol excise duty rates to inflation and restricting or banning the remote sale of alcohol. The Estonian Chamber of Commerce and Industry (ECCI) supports the goal of reducing alcohol consumption but emphasizes that the planned measures must be genuinely effective in achieving the objective rather than merely increasing bureaucracy.

Existing Measures Must Be Evaluated Alongside New Ones
In its feedback to the ministry, the ECCI stressed that the strategic goals and planned measures must be genuinely effective rather than adding unnecessary bureaucratic burdens. For instance, it is essential to assess whether the supervision of alcohol sales restrictions is currently effective. If not, changes should be made to ensure proper enforcement.

The Chamber emphasized the need to evaluate which measures are currently effective in reducing alcohol consumption in the Estonian context and which are not. Based on this analysis, conclusions should be drawn regarding the most effective strategies. Although the development document references recommendations from the World Health Organization (WHO) and the Organisation for Economic Co-operation and Development (OECD) for implementing additional measures, it is also crucial to analyze potential shortcomings of existing measures. New restrictions should not be introduced continuously without reviewing the effectiveness of existing ones, and ineffective measures should be reconsidered or discontinued.

Identifying the Causes of Excessive Alcohol Consumption
The ECCI believes that the 2025–2035 alcohol consumption reduction strategy must address the underlying reasons for alcohol use. Currently, the strategy focuses primarily on prohibitions, restrictions, and regulations, but it does not analyze the root causes of alcohol consumption in Estonia. Identifying these underlying causes would allow for targeted measures that effectively prevent excessive drinking and its associated harms. Instead of imposing broad restrictions on the entire population, measures should be tailored to effectively address specific high-risk groups.

Alcohol Excise Duty Should Not Be Automatically Linked to Inflation
The ECCI does not support the proposal to automatically link alcohol excise duty to inflation. The Chamber argues that such an automatic mechanism would make alcohol price forecasting difficult, potentially encouraging cross-border trade and negatively impacting the competitiveness of businesses. A rise in excise duty would also have adverse effects on investments in the sector and long-term competitiveness, ultimately harming export potential.

In addition to affecting business competitiveness, excise duty increases could negatively impact the Estonian economy by reducing tourism and fueling cross-border trade, which directs revenue away from Estonia. While the Chamber acknowledges that alcohol excise duties should be adjusted periodically, they should not be automatically tied to inflation. Instead, adjustments should take into account multiple influencing factors, including inflation, the excise policies of neighboring countries (especially Latvia and Finland), the share of the black market, and other significant factors affecting alcohol consumption.