Alkoholio kainų politika Lietuvoje 2000-2009 m.
Alcohol price policy in Lithuania during 2000-2009 years

Summary/Abstract: Alcohol price policy is one of the most tightness areas in the state regulation. Alcohol industry protects its economical interest. The state has dual interest: to protect public health and to have profit from excise duties of alcohol beverages. These processes has direct link with consumption of alcohol and fixed excises duties and others alcohol price regulations tools. Alcohol consumption is very high which causes very high mortality, alcohol-related harm to person and society during the past decade in Lithuania. The research related to alcohol price policy shows direct connection between alcohol consumption and alcohol price. In general low prices lead to high consumption. The research of alcohol policy shows that alcohol excise duties, minimum price per ml of pure alcohol and ban to discount below fixed minimum price are the most discussed and used tools of alcohol price regulations. If excise duties are enough high, they raise the price of alcohol and prevent all society from alcohol related harm. Minimum price has to be related with price per ml of pure alcohol. This tool works well with restriction of discounted sales below a certain price per ml of pure alcohol. The balance of excise duties (income from alcohol tax) and cost-cutting for alcohol related harm is very important for Lithuania which faces the state budget deficit. The object of this article is excise duty of alcohol, price and consumption during 2000-2009 years. The main purpose of this study is to analyze how alcohol price and excise duties influence sale, consumption and income to national budget. Study is based on literature review and statistical analyses of data from State tax inspectorate under the Ministry of Finance of the Republic of Lithuania and Department of Statistics to The Government of the Republic of Lithuania Conclusion: Only alcohol excise duties, as one of the alcohol price regulation tools, formally used in Lithuania. The excise duties are various for the type of alcohol beverages. Excise duties are not balanced especially for beer. The consumption of pure alcohol from beer is a little higher than from strong alcohol beverages. An amount of income from the excise duties on beer is 1/6 from the total collection of excise duties from all types of alcohol. The collection of excise duty from strong alcohol beverages is 70% from total alcohol tax. If we consider that the consumption of pure alcohol from strong alcohol beverages and beer are similar, the income from tax has to be similar. But the difference of excise duties income from strong alcohol beverages and beer were 441 666 000 litas in 2009 years. The similar tendency was during 2000-2009 years period. The argument that excise duty for beer is low shows the fact that tax has no real impact on beer price during 2000-2009 years. The average of beer price during the past years increased (a few cents), but the sales (price discount) makes possible to by cheapest beer which is twice lower than average price. The research shows that people high price alcohol beverages substitute with lower price beverages. The data shows the same situation in Lithuania too. Recent proposals for supply reduction or increasing alcohol price are to set up minimum alcohol price per certain ml pure alcohol, ban on discount below fixed minimum price and increasing excise duties, especially for the beer witch consumption per capita in Lithuania is very high.

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