Tag: Estonia

  • Estonia Smoke-Free Spaces Expanding

    Estonia Smoke-Free Spaces Expanding

    Image: Scanrail

    Estonia’s government has plans to expand smoke-free outdoor spaces, including places like beaches and parks, according to ERR News.

    The government approved Estonia’s positions on tobacco policy, including the expansion of smoke-free outdoor areas to include terraces, parks, beaches and other recreational areas where many people gather.

    “Today, we are talking about a restriction that still allows individuals to smoke but in a way that does not harm the health of those around them,” said Aive Telling, head of environmental health and chemical safety at the Ministry of Social Affairs. “This is the most important point in ensuring a smoke-free environment. We must consider others, and this is also about changing societal attitudes to ensure our actions do not harm others.”

    “Let’s say that today, alcohol consumption on the beach is monitored, people are reminded that drinking alcohol on the beach is not allowed,” said Piret Valjaots, head of the Tartu Health Service. “Similarly, it will likely be possible to monitor tobacco use during the beach season. It becomes more complicated with parks as there is no constant law enforcement presence in public spaces.”

    A detailed plan is not yet in place.

    “Things do not change overnight, and this is just the beginning of a longer and broader process,” said Telling. “Today, these positions are the direction in which we are moving throughout Europe.”

  • Finland and Estonia Investigate Smuggling

    Finland and Estonia Investigate Smuggling

    Image: Oleksii

    Finland and Estonia are investigating a criminal case involving the illegal import of millions of cigarettes into Finland from Estonia and Latvia, reports The Baltic Times.

    By failing to declare imports and pay taxes, Finland missed out on approximately €2 million ($2.18 million) in revenue, according to fiscal authorities.

    Finnish and Estonian law enforcement officers recently seized two freight consignments containing a total of almost half a million cigarettes. The seizures are part of a criminal case estimated to involve the illegal import of about 6 million cigarettes spread over more than 20 different occasions between March and December 2022.

     Some of the cigarettes were found to be counterfeit products.

     During the criminal investigation, five persons have been apprehended in Finland and Estonia.

    Sanctions on Russia and the sharp fall in traffic across Finland’s eastern border have shifted many illegal imports to postal and express freight transport, the Finnish customs authority reports.

  • Estonia to Increase Excise on Tobacco

    Estonia to Increase Excise on Tobacco

    Image: Tobacco Reporter archive

    Estonia’s incoming government plans to increase the excise duty on tobacco and alcohol products, but the rate has not yet been released, according to The Baltic Times.

    “The coalition partners have agreed upon a slow yearly growth, and a proposal by the finance minister is expected regarding concrete rates,” said Merlyn Sade, head of communications at the Social Democratic Party. 

    Mart Vorklaev, the Reform Party’s finance minister designate, said that it has been agreed upon that the taxation of health-related risk-taking behavior would continue and that an increase needs to be avoided in cross-border trade.

    “It should also be a part of the tax package that’s planned to be brought into the Riigikogu during the spring session,” Vorklaev said. “We will try to adhere to the principle that tax changes be known six months before they enter into effect, and we’ll also monitor our neighboring states’ tax rates to prevent cross-border trade.” 

    “The difference in excise duties with Latvia is small at present,” said Sven Sulga, Distillery Moe OU sales manager. “If Latvia doesn’t increase its duty rate, people might not go to Latvia [to buy alcohol] in the first year, but they will start doing it after that. Looking at all the incoming taxes, however, I think people will go to Latvia out of spite.” 

    “It would definitely be interesting to know how the state plans to avoid, in the case of products subject to high excise duties, a future scenario where the same goods can be obtained at a cheaper price from our neighboring countries and the Estonian taxpayer decides to take their money there instead,” said Kristina Mustonen, CEO of Maxima Estonia. “I am of the opinion that the increase in excise duty rates will boost alcohol tourism once more, and trade near the border will gain impetus for the benefit of our neighboring state’s budget.” 

  • Estonia Bans Tobacco Imports from Russia

    Estonia Bans Tobacco Imports from Russia

    Photo: rarrarorro

    Estonia banned imports of cigars, cigarillos and cigarettes from Russia on Jan. 9 in compliance with EU sanctions relating to the war in Ukraine, reports Interfax.

    “On 9 January, the transitional period for sanctions imposed by the European Union on a number of consumer goods originating in the Russian Federation will end, and their import into the European Union will be prohibited from Monday,” the Estonian Tax and Customs Board said in a statement.

    “As from 9 January, the transitional period will also end for those sanctioned goods for which supply contracts were concluded before 7 October.”

    The import ban covers a broad selection of consumer goods, including cosmetics, washing and cleaning products, clothes and footwear.

    The prohibited items must be abandoned by the traveler on the border or risk confiscation, the board said.

  • Estonia Suspends E-Liquid Taxation

    Estonia Suspends E-Liquid Taxation

    Photo: Makalu from Pixabay

    Estonia’s parliament recently voted to suspend the nation’s excise tax on e-liquid between April 1, 2021, and Dec. 31, 2022, to reduce cross-border and illicit trade. The Estonian excise duty on e-liquid has been €0.2 ($0.24) per mL since 2018.

    “Suspending the collection of excise duty will make it possible to lower the price of e-liquids and thus offer consumers controlled and safe products at a lower price,” said Tarmo Kruusimae, parliament member and chairman of the parliament’s Smoke Free Estonia Support Group.

    “It has the potential to become a success story if we manage to reduce both the illicit trade and cross-border trade and at the same time offer less harmful alternatives to cigarettes at a more competitive price.”

    The group estimates that about 62 percent to 80 percent of the Estonian e-liquid market comprises self-mixed, cross-border and smuggled e-liquids primarily from Latvia and Russia. The e-liquid black market strengthened in 2019 when Estonia implemented a tobacco and vapor product flavor ban.

    Tobacco harm reduction advocates welcomed Estonia’s decision. “Estonia’s example with over-taxation of e-liquids should definitely be an educational experience for other countries,” said Ingmar Kurg, CEO of NNA Smoke Free Estonia and a member of the International Network of Nicotine Consumer Organizations, in a statement.

    “If laboratory-tested and legal products are made too expensive for consumers, they will look for solutions in the black market, self-mixing and cross-border trade. Some people give up e-cigarettes and return to smoking, which happened in Estonia.”

  • Estonia Mulls End to E-Liquid Taxes

    Estonia Mulls End to E-Liquid Taxes

    Photo: Purilum

    Lawmakers have submitted a bill to Estonia’s Parliament that would stop the collection of excise duty on tobacco e-liquids for two years.

    The legislators hope the measure will help to control the border trade and black market.

    In the draft explanation, the bill’s authors note that stopping the collection of excise duty will give entrepreneurs an opportunity to cut the price of e-liquids and encourage the sale of legal products.

    If passed, the legislation will enter into force on Dec. 1, 2020. 

  • Contraband on the run

    Contraband on the run

    The volume of contraband cigarettes, including counterfeit products, entering Estonia decreased by 21 percent last year, according to an Eesti Rahvusringhääling [Estonian Public Broadcasting] story.
    At the same time the legal cross-border trade in cigarettes increased by 35 percent.
    These figures were said to have come from a report of a study conducted by KPMG for the Royal United Services Institute for Defence and Security Studies (RUSI).
    The study apparently cited strong border controls and the ‘work of the security authorities’ as reasons for the fall in the illegal trade.
    The report said that, compared to the situation in 2013, the contraband market in cigarettes had fallen from 350 million to 180 million cigarettes.
    Despite this fall, the report says that state revenues would be better off to the tune of €26 million if contraband sales could be converted into sales of licit products.
    Seventy-seven percent of the contraband cigarettes that reach Estonia originate in Russia and Belarus, from where the best-known brands are Bayron and NZ.
    Although contraband volumes continue to decrease, legal cross-border trade from which the state does not receive tax income has increased by 35 percent. Between 2016 and 2017, the number of cigarettes brought from Latvia legally doubled.