Finnish EU presidency seeks higher alcohol taxes

The Finnish European Union presidency said on Tuesday it hopes to see an increase in excise duty on alcohol in the EU to correct what it sees as distortions in the bloc's internal market.

Finland, which took over the rotating presidency of the EU on July 1, levies some of the highest alcohol taxes in the world. The country has suffered from steadily rising alcohol imports particularly since neighbouring Estonia joined the EU in 2004, where prices are considerably lower.

"It is necessary to harmonize the tax rates to even out the price levels of alcohol," the Finnish EU presidency said in a press release published in the run-up to a planned meeting of the Council of European finance ministers later this week.

"The aim of the Finnish presidency is to raise the EU minimum excise duty rates on alcohol particularly with regard to spirits," the press release added.

Retail sales of all alcohol above 4.7 percent proof in Finland are limited to the state-run monopoly supplier Alko.

In an attempt to limit the impact of attractive Estonian alcohol prices Finland in March 2004 slashed tariffs on spirits by 40 percent. According to health professionals the move led to an increase in deaths from alcohol abuse.

According to official figures, the number of fatalities linked to alcohol jumped by 20 percent in 2004 and reached a record one in three for men aged between 45 and 49 years.

Deaths related to alcohol abuse in Finland have risen steadily over the last 20 years despite government health campaigns and a marked fall in demand for spirits in favour of beer and wine.