Shaken, not stirred

The budget needs more money – there is less money to spend in people’s pocket: this is not the best scenario when you want to sell alcoholic beverages. In the first quarter 25 percent less excise duty was paid. Did we quit alcohol? It is rather unlikely. Soaring excise duties are detrimental to the competitiveness of fair market players and lead to a boom in illegal alcoholic beverage production and distribution. If present trends are going to prevail, both legal sales and the level of paid duties will decrease. The solution would be an immediate cut in excise duties, returning to the level before 1 January 2010 at the minimum. Besides, the government and the sector should work out a tax policy for the industry that serves the long term interests of both parties.