Finnish bars and restaurants hurt by alcohol tax, errr, themselves
Last March alcohol taxes were slashed significantly in Finland. 12-packs of beer went from about 12.99€-13.99€ to 6.90€-7.90€ – The prices of spirts dropped by about 1/3rd – one-half in price. All of Finland rejoiced, except for a few stubborn left-wing types and according to this article, bars & restaurants…
Last year sales at licensed restaurants in Finland declined for the first time since the recession of the 1990s, and a poll of bar owners suggests that there is widespread pessimism about the future.
Competition in the field is intense, and sales in the restaurant business have not kept pace with the number of new watering holes opening up. Restaurant sales have not recovered after the recession as well as other sectors of the economy, and increasing numbers of venues are competing for customers.
…although alchol prices in stores dropped, the prices at Finnish bars & restaurants did not. The management of these places did not allow their customers to benefit from the tax breaks, they elected to keep the profits for themselves – and now they done screwed themselves since many Finns would much rather save money and enjoy their Lapin Kulta from home. Hmmmm….goto a skanky, over-priced, smoke-filled bar and drink warm beer -OR- stay in the comfort of my own home and drink cheap beer…..Yeah, I just can’t understand why Finns aren’t going out as much anymore.
The main impact of last year’s tax cut has been an increase in retail sales and drinking at home.
I’m soooo looking forward to the first Socialist Democrat member who says, “We need to rollback these tax-breaks because people are drinking way too much……and not drinking enough in bars and restaraunts!!”




