Alcoholic beverage tax is anticipated to change on January 1st 2018

The increase to alcoholic beverage tax has been through the parliamentary review and the first effective date depends on the enactment date.

• If the enactment is handled on targeted schedule, the new tax will be effective from January 1st 2018 onwards. If the enactment is postponed to beginning of January, the first effective date will be February 1st.

• Alko is making preparations with the assumption, that the tax increase will be effective from January 1st onwards. If this happens, the retail price for products will change on January 1st. The increase to prices will be carried out as a technical price increase by Alko. This in practice means, that

  • for a supplier, who delivers products with delivery terms “TOP Alko’s shops”, all products will receive a new purchase price including tax calculated by Alko. The new price will keep the purchase price without tax the same. This will be effective from January 1st onwards.
  • for a supplier delivering products to Alko’s central warehouse the purchase price will remain the same, because with these products Alko is responsible for the alcohol beverage tax. The new tax is taken into account in the retail price.

• The price calculator on Alko’s web pages is updated on December 20th. The new calculator is based on the increased alcohol beverage tax, which is anticipated to take effect on January 1st.

• Alko will inform suppliers one by one with the new purchase and retail prices before year end.

• The planned normal cycle price change on February 6th will take place normally. If a supplier has notified Alko with a new purchase price by 1 December 2017 to be effective from February 6th, it will become effective as such.

• Alko has released a hearing to the listing procedure and retail sale of alcoholic beverages, according to which Alko would have the right to provide suppliers with an extra price change notification opportunity in case of external price factor changes during the price list period. Based on this, Alko is planning to provide an extra price change opportunity to be effective from March 1st. Details regarding this will be announced on the first week of January. The time between these detailed instructions and the deadline to notify the new prices in this case will be at least two weeks.