Alcohol, Estonia, EU – Baltic States, Latvia, Legislation, Markets and Companies, Taxation

"When we look at the beer sector, the most serious problem arises from the fact that next year there will be noticeable trade between Latvia and Estonia, i.e. Estonians will start buying beer from Latvia. The government will be deprived of revenues and that will also affect the beer producers," he said.

Noop explained that today, the price difference between Estonia and Latvia is three cents per one degree of alcohol. "Looking at the world practice, at around four cents, cross-border trade will start emerging. We will have that next year," he said.

He added that the same thing is happening between Estonia and Finland now, but it is a positive trade for Estonia, while between Latvia and Estonia it would be a negative trade.

The Estonian government is today discussing increasing different excise taxes. The previous government's decision to raise excise tax on alcohol in the years 2015 and 2016 by 5% will be replaced with a 15% excise tax increase in 2015, and 10% increase in 2016. In addition, alcohol excise tax will be raised by 10% in 2017 and 2018. The tobacco excise will be increased by 5% in the years 2016-18.