Finland's Minister of Finance Antti Kalliomäki (SDP) says that no changes are to be expected in the taxation of alcoholic beverages when the government convenes at the end of the summer to discuss the budget.
In an interview with Helsingin Sanomat, Kalliomäki says that more information is needed on the impact of the current relatively low level of alcohol taxes. The Ministry of Social Affairs and Health has promised that new information will be on the table in the autumn.
Kalliomäki says that new decisions might be forthcoming early next year at the earliest, when the government sets its budgetary spending limits for the coming years.
The government of Prime Minister Matti Vanhanen (Centre) lowered the taxation of alcoholic beverages from the beginning of May 2003.
Kalliomäki notes that the reason for the tax cut was to seek a balance that would secure reasonable tax revenues for the state, while preventing a massive growth in imports by travellers from Estonia.
"I think that we have been rather successful in the matter, although the negative side is that the impact on health will be very difficult."
The Ministry of Finance will publish its proposal for next year's budget on Tuesday. Finance Minister Kalliomäki feels that at least the short-term outlook is promising.
"Corporations are in top form, the purchasing power of the people is in better shape than I had thought, and there are better prospects in the international economy than in the spring."
However, he warns against getting too excited over the forecast of three percent growth next year, noting that in the next five years the impact of the ageing population will be felt more clearly than now.
