Iceland review - 2004, Blaðsíða 34

32 ICELAND REVIEW
litres per year of it. Of the consumer’s price,
over 60% is deposited into Iceland’s treas-
ury. However, according to the Political
Advisor to the Minister of Finance,
Ragnheidur Árnadóttir, (who replied via
email), “The revenue becomes part of the
general treasury income and is not ear-
marked for specific purposes.”
Two bills are currently in Parliament. The
first is to lower the drinking age from 20 to
18 which does not change consumer spend-
ing power, but does expand the market, and
that’s good for the monopoly. The second
bill is to give private stores the right to sell
beer and wine, again allowing the consumer
increased access to supply, but doing noth-
ing for spending power.
But nobody’s complaining
So high taxes are apparently here to stay,
for no clear reason, and to no benefit,
except to expand the coffers of the Icelandic
government. Petur Gunnarsson stated on
behalf of Framsoknarflokkurinn (The
Progressive Party), one of the two-party
coalition in power, “There are no plans to
lower taxes because there is no major move-
ment from the general public to do so.
Lowering taxes on alcohol is just not a big
issue.” Agust Olafur Agustsson, spokesper-
son for Samfylkingin (Alliance Party), a polit-
ical party not in power but with representa-
tion in Parliament, said, “We would like to
see ATVR remain open to sell hard liquor.
We also realize that the high taxes on alco-
hol have an effect on tourism as well as the
spending power of the Icelandic people. The
party wants to lower taxes in general but
wants to lower taxes on other things, like
food, first. We feel that it is, however, time
to revise the current alcohol policy and our
approach to consumption.” Iceland’s
Minister of Finance has said on record that
he believes the beer and wine taxes are too
high. Ragnheidur Árnadóttir added, “The
priority of the government is to first lower
other taxes, such as the personal income
tax.”
Árni Einarsson, Managing Director of the
Centre for Alcohol and Drug Prevention
(FRAE), commented, “If you look back to the
1920s, our alcohol culture has improved. In
the last ten years, people are getting drunk
less often. Still, we have a group of young
people who are drinking rather heavily and
there is no simple answer for that, perhaps
it has something to do with the shift from
drinking hard liquor to drinking wine and
beer– maybe they are drinking more often.”
Helgi Gunnlaugsson concurred, “The drink-
ing culture has improved with relaxed gov-
ernment policies. Still, it is important that
we talk to the young people in this country.
I don’t think it is right to create an opposi-
tion out of them.”
What about the politicians who say public
outcry to lower taxes is nonexistent? Helgi
Gunnlaugsson responded, “The majority of
Icelanders are intellectually and financially
capable and Iceland is a small homogenous
nation, so this gap between the public and
government should not exist. I can’t explain
it.”
Rachel K LeValley is a freelance
writer living in Reykjavik.
“The treatment industry is relatively powerful
in Iceland. It is influenced by the US model and
has become a convincing interest group.
It has proven powerful and has placed itself in
the centre of dialogue and the budget.”
Alcohol 14.6.2004 21:28 Page 32