Finland proposes 2027 excise rises: alcohol up 4.5%, tobacco up 5%

The government proposes raising alcohol excise duty by an average of about 4.5% from 1 January 2027.Vero The increase would apply mainly to drinks containing more than 5.5% alcohol by volumeVero, but would not cover beer or drinks in the ethyl alcohol group of tariff heading 2208 with at most 10% alcohol, such as long drink beveragesFinlex. The increase would be EUR 2.20 per litre of pure alcohol in every drink group, so the same amount relative to the alcohol contentFinlex, and it would be added on top of the index-adjusted 2027 rates the Tax Administration confirms by decisionVero. The proposal puts the additional annual alcohol-tax revenue at about EUR 20 million and the average price effect on the affected drinks at about 2%.

The structure matters for wholesalers, importers and retailers. Alcohol excise is set per drink group and strength band: beer is taxed on its ethyl alcohol content in two bands, wine and other fermented drinks per litre of finished product in several strength bands, intermediate products in two bands, and ethyl alcohol products in three bands, with the top band covering drinks above 10% alcohol. The bill amending section 4 and the annex of the alcohol and alcoholic beverage tax act (1471/1994) sets the table applying in calendar year 2027Finlex; from 2028 the indexed amount confirmed annually by the Tax Administration by 15 August applies instead.

The indexation agreed earlier continues alongside the increase: from the start of 2026 levels have been permanently tied to the harmonised consumer price index (the 2026 change was 1.4%). Because the Tax Administration's August decision confirming the 2027 indexed levels would not become final if Parliament later enacts the higher statutory levels, the Tax Administration noted the added communication and advisory burden.

Tobacco excise would rise by an average of 5% on top of the previously enacted increase taking effect at the same timeFinlex. The increase covers cigarettes, roll-your-own tobacco, pipe and cigarette tobacco, cigars and cigarillosVero, and is implemented by raising the unit-based component of the taxFinlex while the ad valorem component stays unchangedFinlex. The proposal expects average prices of cigarettes and roll-your-own tobacco to rise by about 5%, pipe and cigarette tobacco by about 4%, and cigars and cigarillos by about 3%, adding about EUR 30 million a year in tobacco-tax revenue compared with no increase. The cheapest cigarettes, roll-your-own tobacco, cigars and cigarillos are taxed at a fixed unit-based minimum instead of the price-based component, so the rate structure has no effect on their taxation.

E-liquids, heated tobacco products and smokeless nicotine products such as nicotine pouches are not coveredVero; the consultation feedback records health bodies calling for those rates to be tightened as well, particularly given use among young people, while parts of industry opposed tightening them before the effects of earlier changes are known. The tobacco bill sets table E applying 1 January to 30 June 2027 and table F from 1 July 2027, continuing the existing half-yearly schedule.

Both proposals are linked to the 2027 budget proposal and intended to be considered together with it. The alcohol-tax bill (HE 172/2026, act 1471/1994)Finlex and the tobacco-tax bill (HE 171/2026, act 1470/1994)Finlex would both enter into force on 1 January 2027Vero. Excise collection and supervision are handled by the Tax Administration, with Customs holding a supervisory role and responsibility for excise goods imported from outside the EU in defined cases.

Legal basis: HE 172/2026 vp amending section 4 and the annex of the alcohol and alcoholic beverage tax act (1471/1994)Finlex, and HE 171/2026 amending the annex of the tobacco tax act (1470/1994)Finlex.