Estonia to Increase Taxes on Alcohol and Tobacco

Apr.17.2023

Estonian government to increase tobacco and alcohol tax, exact percentage unknown. Raises concern for border trade with Latvia.

According to a report by the Baltic Times on April 14th, the incoming Estonian government is planning to raise taxes on tobacco and alcohol but has not yet announced the specific increase. Estonia is a Nordic country located on the eastern coast of the Baltic Sea and borders Russia, Latvia, and Finland.

Merlyn Sade, spokesperson for the Social Democratic Party, has announced that alliance partners have reached a consensus and that the Finance Minister will propose specific tax rates.

Matt Vorklaev | Photo source: Personal official website

Mart Vorklaev, the incoming Finance Minister of Estonia, has stated that "unhealthy behaviour" will continue to be taxed and efforts will be made to avoid an increase in cross-border trade.

Some professionals in the tobacco and alcohol industry believe that the government has discussed increasing taxes by 5% annually. However, they think that such an increase in consumption tax may affect purchasing power and could encourage cross-border trade. One of them said, "If Latvia does not raise its tax rate and people see our domestic tobacco and alcohol taxes increasing, they will go to Latvia to consume for this reason.

According to industry insiders, they believe that the consumption tax will have an impact on the entire industry, with taxes currently comprising almost two-thirds of the price of a bottle of high-proof alcohol.

Related Reading:

Estonia may ban disposable e-cigarettes.

Reference:

The new Estonian government is reportedly considering an annual increase in the pricing of alcohol and tobacco products, according to Postimees news.

#Asia #China #Disposable e-cigarettes #E-cigarette Taxes #Estonia

This document has been generated through artificial intelligence translation and is provided solely for the purposes of industry discourse and learning. Please note that the intellectual property rights of the content belong to the original media source or author. Owing to certain limitations in the translation process, there may be discrepancies between the translated text and the original content. We recommend referring to the original source for complete accuracy. In case of any inaccuracies, we invite you to reach out to us with corrections. If you believe any content has infringed upon your rights, please contact us immediately for its removal.

Malaysia CID Endorses Nationwide Vape Ban Amid Rising Drug-Laced Vape Cases

Malaysia’s Federal Criminal Investigation Department (CID) has voiced support for a nationwide ban on vaping, particularly targeting drug-laced vape devices, to address rising abuse cases.

Oct.23 by 2FIRSTS.ai

Australia NSW Police Crack Down on Illicit Tobacco Syndicate Under Strike Force Franklin

NSW Police, together with NSW Health and the Australian Border Force, seized more than 18,000 vapes, 1.9 million cigarettes, 74kg of loose-leaf tobacco and five unregistered firearms during a week of action under Strike Force Franklin. Four people were charged following coordinated raids on the Far North Coast. Police said the operation targeted organised crime networks profiting from illicit tobacco sales, with an estimated street value exceeding $2.35 million(1.54 million US dollars)..

Nov.03 by 2FIRSTS.ai

Bremen Sees Active Illicit Trade in E-Cigarettes and Nicotine Pouches; Regulators Say ‘Nearly Every Inspection Finds Violations’

Bremen’s state government warns of increasingly active illicit trade in e-cigarettes, snus, and nicotine pouches. Enforcement reports “violations in nearly every inspection,” with some disposable vapes exceeding Germany’s 2 ml e-liquid cap. Since 2024, authorities have recorded 54 violations in 255 checks, concentrated around the central station district and city center.

Oct.10 by 2FIRSTS.ai

Belarus to Tighten Vape Regulations, Raise Excise Taxes in 2026

Belarusian lawmakers are drafting a new bill to regulate the vape market amid growing concern over youth nicotine use and the spread of illegal products. While a total ban is not planned, the focus will be on stricter licensing, advertising limits, and higher taxes.

Nov.19 by 2FIRSTS.ai