High Tax on Vodka Good for the State and Mind

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High Tax on Vodka Good for the State and Mind

In an interview with weekly Viðskiptablaðið, Andri Þór Guðmundsson, head of beverage company Ölgerðin, said it is hard to believe that his company is one of the largest collectors of taxes for the Government of Iceland.

vodka_wiki

Photo: Wikipedia.

As the largest brewer and producer of spirits in Iceland, the company pays 67 percent in taxes for the beer it produces, meaning that two thirds of the price of a can of beer goes to the state. Of the popular Tinda Vodka, which Ölgerðin  produces, the company pays 91 percent in taxes to the state treasury. The remaining nine percent is production, raw material, the glass bottle, sales and marketing costs.

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