Vínbúð
Encyclopedia
Vínbúð (ˈviːnˌpuːθ, wine shop) is a chain of 46 stores run by the Iceland
ic alcohol
and tobacco
monopoly
ÁTVR
, locally called ríkið (ˈriːkɪθ, the State). It is Iceland's sole legal vendor of alcohol for off-premises consumption, though in practice most bars and restaurants will not prevent you from leaving with purchased drinks. High licensing fees make this an expensive option, however, and alcohol is always at least twice as expensive outside the Vínbúð.
Iceland has very high tax
es on alcohol. Historically, this was to curtail consumption. Tax rates in stores are not a percentage of price (such as a sales tax
or income tax) but are proportionate to the alcohol content.
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
ic alcohol
Alcoholic beverage
An alcoholic beverage is a drink containing ethanol, commonly known as alcohol. Alcoholic beverages are divided into three general classes: beers, wines, and spirits. They are legally consumed in most countries, and over 100 countries have laws regulating their production, sale, and consumption...
and tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
ÁTVR
ÁTVR
Áfengis- og tóbaksverslun ríkisins or ÁTVR is a state owned company that has a monopoly on the sale of alcoholic beverages and tobacco in Iceland. It runs the Vínbúð chain, often called Ríkið after its owner....
, locally called ríkið (ˈriːkɪθ, the State). It is Iceland's sole legal vendor of alcohol for off-premises consumption, though in practice most bars and restaurants will not prevent you from leaving with purchased drinks. High licensing fees make this an expensive option, however, and alcohol is always at least twice as expensive outside the Vínbúð.
Iceland has very high tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
es on alcohol. Historically, this was to curtail consumption. Tax rates in stores are not a percentage of price (such as a sales tax
Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
or income tax) but are proportionate to the alcohol content.