Iceland tax and cows

Tax and cows

This is one for Christmas trivia: in which country can you combine alcohol tax and cows?

The answer is Iceland, which is planning to increase tax on alcohol by 4.7 per cent in the new year. Iceland’s alcohol tax is the highest in Europe.

A bottle of vodka in Iceland costs 7300 Icelandic krona ($87.86). The government takes 94 per cent via:

  • Tax: 5419 krona
  • Bottle deposit: 20 krona
  • State-run liquor store (Vínbúðin): 705 krona
  • VAT (GST): 724 krona

The producer gets 434 krona ($5.22).

That takes care of the tax. As for cows, bag-in-box wine in Iceland is called a cow (belja) because taking wine from a box reminds Icelanders of milking cows.

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