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Dietary supplements containing alcohol to be sold as spirits with no excise

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU, Edmunds Demiters

Edmunds Demiters

Exempting the alcohol-containing dietary supplements from the excise tax will give way to a new niche of legal production of alcoholic infusions without paying the excise tax, the Alcohol Producers and Traders Association (APTA) reveals to the business news portal BNN.

Such an opinion was expressed when commenting on the recently adopted amendments to the law On Excise Tax, stipulating tax exemptions for such food supplements as balm herbal infusions with alcohol content up to 80 ml per litre.

The current law foresees the excise is not applied to alcohol-based infusions with up to 1.2% alcohol, registered as food supplements, while all other infusions of more than 1.2% alcohol are subject to the excise tax.

This is why adoption of such amendments would result in excise tax losses and creation of new, revenue-generating niche, the APTA representatives emphasize.

Companies of the sector regard this legislative initiative as a support of a new business niche going beyond the alcohol turnover control and the age limit for the use of alcoholic beverages and infusions. In Estonia, such nutritional supplements on  alcohol basis are subject to the excise duty, while in Lithuania they are registered as medicines and are subject to the medicine circulation provisions, indicates the Chairman of the APTA Board and SIA Jaunalko Board Edmunds Demiters.

If the Saeima supports this, it is only a matter of time for the alcoholic products under the title «food supplements» to become a beneficial business niche for selling an actual alcoholic beverage and dodging the excise tax, Demiters notes.

According to the information available to the State Revenue Service, the application of excise tax on nutritional supplements differs in the European Union (EU) countries. Several EU member states have excise tax exemptions, while others impose the excise tax. For example, in Ireland, dietary supplements are defined as medicines. Also in Lithuania, nutritional supplements must be registered in the medicine register or recognized as medicines or as their content. In Slovakia and Slovenia, the excise tax is not imposed on nutritional supplements. While in Estonia, Hungary, Belgium and France food supplements with ethyl alcohol concentration above 1.2% are considered as alcoholic beverages and are subject to the excise tax.


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  1. Victor says:

    Well, this is beneficial for some fraudsters.

    Thumb up 0 Thumb down 0

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