Estonia Suspends E-Liquid Tax
Estonia’s parliament recently voted to suspend excise tax on e-liquid from April 1, 2021 to December 31, 2022, in order to reduce cross-border and illegal trade. Since 2018, Estonia has imposed an excise tax of €0.20 per milliliter on e-liquid. Tarmo Kruu
The Estonian parliament recently voted to suspend the excise tax on e-liquids from April 1, 2021, to December 31, 2022, to reduce cross-border and illegal trade. Since 2018, Estonia has imposed an excise tax of €0.2 (approximately $0.24) per milliliter on e-liquids.<\/span><\/div>
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Tarmo Kruusimae, chairman of the Smoke-Free Estonia support group, stated: "Suspending the excise tax could potentially lower the price of e-liquids, thereby providing consumers with controlled and safe products at a lower price."<\/span><\/div>
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"If we manage to reduce illegal and cross-border trade while providing less harmful cigarette alternatives at more competitive prices, it could become a successful model."<\/span><\/div>
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The organization estimates that about 62% to 80% of Estonia's e-liquid market consists of self-mixed, cross-border, and smuggled e-liquids, primarily from Latvia and Russia. The black market for e-liquids was strengthened in 2019 when Estonia implemented a flavor ban on tobacco and vaping products.<\/span><\/div>
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Advocates for reducing tobacco harm welcomed Estonia's decision. Ingmar Kurg, CEO of NNA Smoke-Free Estonia and a member of the International Network of Nicotine Consumers Organizations, stated in a statement: "Estonia's example of over-taxing e-liquids should serve as an educational experience for other countries."<\/span><\/div>
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"If legally tested products are too expensive for consumers, they will seek solutions in the black market, self-mixing, and cross-border trade. Some people have given up e-cigarettes and returned to smoking, which has happened in Estonia."<\/span><\/div>



