No plans to regulate price of beer in licensed premises

In places pint of lager has cost as little as ten cents

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The Ministry of Social Affairs and Health has made no plans to set any lower limits to the prices of alcoholic beverages sold at licensed premises.
      The fact that in some establishments it has been possible to buy a pint (or more precisely 0.5l) of lager for as little as ten cents (EUR 0.10) has caused some discussion.
      The ministry is currently preparing an amendment to the law on alcohol advertising and promotion, but for the time being the main focus is on the effects of conceptual advertising on children and the youth.
      "Drawing up price brackets is extremely difficult", points out Ismo Tuominen of the Ministry of Social Affairs and Health. "What should a legal pint of lager cost?"
     
The authorities' main task is to prevent and tackle the problems caused by excessive drinking.
      "One way would be to prevent establishments from selling beer for ten cents a half-litre. Another way is to focus on supervision and make sure alcohol is not sold to minors or to those already intoxicated", Tuominen explains.
      At present, Finnish law does not forbid anyone from selling alcohol at a loss.
     
Aarne U. Mäkinen of the National Product Control Agency for Welfare and Health believes the ten-cent offers are just marketing gimmicks, the purpose of which is to attract customers during the off-peak hours.
      "It is an early evening offer, but the purpose is also to provoke discussion on the effects of the lowering of tax on alcohol", says restaurant keeper Sedu Koskinen.
      "Lowering the price of beer in grocery stores has increased boozing at home", explains managing director Timo Lappi of the Finnish Hotel and Restaurant Association.
      Both Koskinen and Lappi back up the Parliamentary Social Affairs and Health Committee chairman Valto Koski's (SDP) suggestion to lower the licensed establishments' VAT on alcohol sales from 22 percent to 12.
      This would lower alcohol consumer prices in restaurants by around eight percent.


Previously in HS International Edition:
  Tax on strong spirits set to go down more than 40% - proposed beer tax cut just 32% (20.8.2003)

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