Excise Duty

Excise duty is levied to provide for general government finances. The collection of excise duty can also contribute to health and social affairs, the environment, energy, transportation, or economic policy.

Excise duty is levied on all products that are subject to it, whether domestically produced, imported from a member state of the European Community, or imported from a country outside the Community’s tax territory. Excise duty is levied on alcohol and alcoholic beverages, tobacco products, liquid fuels, electricity and certain fuels, and soft drinks. Waste tax and oil waste duty are also comparable to excise duty. Excise taxation is implemented and controlled by the Finnish Customs.

The Act on Excise Duty (1469/1994) is applied to products that are subject to harmonized excise duty and, where applicable, to products that are subject to national excise duties.

Harmonized Excise Duties

The excise duty levied on certain products is harmonized by directives in the member countries of the European Union, including Finland. These products include

• alcohol and alcoholic beverages
• tobacco products
• liquid fuels
• electricity and certain fuels

Provisions on the level and basis of duties on these products can be found in the respective tax laws. The general procedures concerning excise duties are regulated by the Act on Excise Duty.

National Excise Duties

In Finland, national excise duties are levied on certain products. These products include

• soft drinks
• beverage packages
• waste delivered to municipal landfill sites

In addition, lubricating oil is subject to oil waste duty which is comparable to excise duty.

Where applicable, the general procedures for national excise taxation are also regulated by the Act on Excise Duty.

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