Estonia to Increase Taxes on Alcohol and Tobacco

Apr.17.2023
Estonia to Increase Taxes on Alcohol and Tobacco
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.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

2Firsts Exclusive Analysis | RLX Q1 Revenue Rises 96.2%, International Business Points to a More Integrated Global Strategy
2Firsts Exclusive Analysis | RLX Q1 Revenue Rises 96.2%, International Business Points to a More Integrated Global Strategy
RLX Technology’s Q1 net revenues rose 96.2% year over year, with international business accounting for 72.3% of total revenue. Beyond the headline growth, the results point to deeper globalization: European operations, Nexus supply-chain integration and a broader product portfolio are becoming key signals to watch.
Special Report
May.20
Hawaii Restricts Vape Sales to FDA-Authorized Products, Disposable E-Cigarettes to Be Banned
Hawaii Restricts Vape Sales to FDA-Authorized Products, Disposable E-Cigarettes to Be Banned
Hawaii has enacted two new e-cigarette laws that significantly tighten market access requirements, requiring products to meet FDA authorization standards and banning disposable e-cigarette sales starting in 2027.
Jul.08
Chinese Disposable Brands OXBAR, LYCO Challenge Vuse and JUUL: Pennsylvania’s Pending List Offers a Glimpse of the Future Legal Vape Market
Chinese Disposable Brands OXBAR, LYCO Challenge Vuse and JUUL: Pennsylvania’s Pending List Offers a Glimpse of the Future Legal Vape Market
Pennsylvania’s June 26 ENDS Pending Certifications list previews the state’s future legal vape market, placing Vuse, JUUL and Logic alongside Chinese-linked disposable brands OXBAR and LYCO. Shaped by PMTA eligibility and state rules, the list shows competition shifting from market share to market access.
Special Report
Jul.06
Maine Approves Vape Stewardship Bill Requiring Producers to Manage End-of-Life Devices
Maine Approves Vape Stewardship Bill Requiring Producers to Manage End-of-Life Devices
The Maine Legislature has passed LD 1519, a bill that would establish a producer-funded stewardship program for electronic smoking devices, requiring manufacturers and importers to manage the collection, transportation, recycling and disposal of end-of-life products, particularly disposable vapes containing lithium-ion batteries.
Jun.12
 Philip Morris Lowers Profit Outlook as Zyn Faces Competition and FDA Delays
Philip Morris Lowers Profit Outlook as Zyn Faces Competition and FDA Delays
According to Reuters, Philip Morris International (PMI) lowered its 2026 adjusted earnings-per-share forecast amid regulatory uncertainty around Zyn nicotine pouches, rising competition and shipment pressure in the U.S. market.
PMI
Jun.02
Product|PMI Expands High-Strength Nicotine Pouch Portfolio With Zyn 16.5mg
Product|PMI Expands High-Strength Nicotine Pouch Portfolio With Zyn 16.5mg
According to Better Retailing, Philip Morris International (PMI) has launched Zyn Menthol Ice 16.5mg in the UK, marking the highest-strength nicotine pouch in the Zyn range to date. The eucalyptus- and menthol-flavored product is now available through PMI Open and will begin rolling out to wholesale channels from the end of May.
PMI
May.28