ECONOMIC AND SOCIAL IMPACT OF ALCOHOL TAXATION IN THE BALTIC COUNTRIES

This paper is focusing on alcohol taxation in the Baltic countries. The purpose of the study is to demonstrate alcohol taxes regressive characteristics across various income groups. Alcohol taxation is rather sensitive issue in the Baltic countries - alcohol consumption level is relatively high and public sector revenue depends significantly from alcohol related taxes. Therefore, a system of alcohol taxation in the Baltic countries should consider multiple aspects, such as taxation's social impact, public sector revenue and other theoretical foundations for allocating alcohol taxes over different income groups.Paper's statistical analyses is conducted on the basis of a consumer survey, carried out in all three Baltic countries during 2015-2016. As the study results demonstrate, alcohol taxation is regressive in the Baltic countries and the future tax policy should consider the above-mentioned taxation principles.