According to the budget proposal released this morning, excise duties on petrol, alcohol, tobacco and oil will increase by 2.5% next year. This was reported by Fréttablaðið this morning.
The alcohol tax is expected to return 20.25 billion ISK to the Treasury next year, whilst the tobacco tax is expected to return 6 billion ISK, and the petrol tax 9.7 billion ISK.
Iceland already pays the most alcohol tax of any country in Europe: the Grapevine reported on this when alcohol taxes were raised for 2018. On a bottle of vodka, for example, taxes make up 5,419 ISK of the 7,300 price.
Note: Due to the effect the Coronavirus is having on tourism in Iceland, it’s become increasingly difficult for the Grapevine to survive. If you enjoy our content and want to help the Grapevine’s journalists do things like eat and pay rent, please consider joining our High Five Club.
You can also check out our shop, loaded with books, apparel and other cool merch, that you can buy and have delivered right to your door.
Buy subscriptions, t-shirts and more from our shop right here!
