The share of Estonians buying alcohol in Latvia fell to 23 percent in 2020 - the lowest in four years, a study from the Estonian Institute of Economic Research (EKI) shows. However, there are now concerns rising fuel taxes may send drivers over the border.
In 2020 border trade was affected by both the reduction in excise duty rates the year before as well as the ongoing health crisis.
Revenue from excise duty on alcohol on purchases by foreign tourists on the northern border of Estonia decreased significantly, but at the same time income from purchases by local people on the domestic market increased as Estonians went to Latvia less to buy alcohol and bought more from Estonia, the Estonian Chamber of Commerce and Industry said.
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