Due to the rise in VAT, the Estonian people could buy alcohol in Latvia / day more actively

Already in April, cross -border alcohol trade has increased significantly. Particular interest in buying alcohol in Latvia in Latvia could be light alcoholic beverages, the difference between the prices between the two countries will become even more dramatic.

Currently, the VAT rate in Estonia is 22%and in Latvia 21%. Increasing VAT in Estonia since July, as well as increasing excise duty on alcohol will increase the Estonian people to shop in Latvia, reports « Rus.Postimees.ee ». This is especially true for beer, for which excise duty in Estonia is 43% higher than in Latvia. Already in April this year, cross -border trade has increased by more than 10% compared to April last year.

Lauri Uibo, a board member of Valka and Ainazi store « Superalko » manager Aldar Latvia, said that cross -border trade is still active. He admitted that from July 1, after the VAT rate, the flow of buyers to Latvia would increase further and Latvian traders would go even in the best positions compared to its competitors in Estonia.

« The price is the most important for the buyer. The VAT increase applies not only to alcohol but also to food and daily goods. If we look at the current government alcohol policy program that, for example, to ban remote sales or sales at certain locations, such as gas stations, means that people will start thinking more. Reasonable, « Uibo explained.

He also confirmed that the Estonian people are not the only ones trying to use significantly lower prices in Latvia. Finns, who usually buy alcohol in bulk are also active visitors to border shops.

« Tourism in Latvia is growing thanks to favorable prices, and Latvian restaurants and hotels are actively preparing for the tourist season to attract as many customers as possible, including Estonia, Finland and other neighboring countries, » said Superalko.

Compared to Latvia, Estonia has 42.9% higher excise duty on beer, 14.9% higher for wine and 6.1% higher for other alcoholic beverages.