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Estonia decides to suspend consumption tax on electronic cigarette oil

2021/04/19|Knowledge

According to foreign reports, NNA smoke-free praised the recent decision of the Estonian parliament to suspend the consumption tax on electronic liquids, which intends to reduce the illegal trade in electronic cigarettes, and said more countries should follow suit.

The NNA smokeless Estonia organization is a subsidiary organization of the new nicotine Alliance (NNA) network. It is a member of the international network of consumer organizations (innco) and European tobacco harm reduction advocates (ethra).

When the consumption tax of 0.2 euros per milliliter of electronic liquid in Estonia came into effect, local farmers began to buy Electronic liquids from much lower price neighbours Latvia and Russia.

The Estonian parliament recently voted to suspend the E-liquid consumption tax for the period from 1 April 2021 to 31 December 2022, with the aim of reducing cross-border trade and illegal trade.

NNA smokeless Estonia supports the decision.

Tarmokruusim ä e, a member of the Estonian parliament, said a suspension of consumer tax would likely reduce the price of e-cigarettes and thus provide controlled and safe products to consumers at lower prices. If we try to reduce illegal trade and cross-border trade, while providing alternatives at a more competitive price that are less harmful to cigarettes, it could be a model of success.

Chairman of the Estonian support group, Parliament, smokeless.

The organization calculates that self mixing, cross-border and smuggling of e-cigarettes and tobacco accounts for about 62-80 per cent of the Estonian market as a whole.

Since 2018, Estonia's consumption tax on tobacco and oil has been 0.2 euros per milliliter. Since its entry into force, Estonian users of electronic cigarettes have begun to buy Electronic liquids from neighbouring Latvia and Russia, which are much cheaper, and minors have become buyers and sellers in the black market as the illegal trade in tobacco and oil has begun to grow.

The ban has expanded the black market

When Estonia imposed the ban in 2019, it is understandable that the black market has experienced another major stimulus. However, other Estonians have chosen Latvia again to ensure that they have their preferred taste, while ensuring the quality and safety requirements of Europe.

'the example of excessive tax on tobacco in Estonia, of course, should be an educational experience for other countries, 'said Ingmar kurg, chief executive of NNA smokeless Estonia and a member of the international network of consumers' organizations in nicotine. If legally tested products are too expensive for consumers, they will seek solutions in black markets, self mixing and cross-border trade. Some people give up electronic cigarettes and then go back to smoking.

MP tarmokruusim ä e said Estonia should follow the strategy of other European countries, given public health. Estonia should follow the European example, which has realized that less harmful substances can be successfully used to quit smoking, thereby reducing smoking rates. Estonia should also set a goal for becoming a smokeless country and use less harmful products to achieve that goal.

Many users may continue to mix their own electronic liquids

In discussions in the Estonian parliament, it was noted that while the suspension of the excise tax would bring some users back to the legitimate market, it was still potentially dangerous that most users would continue to add their own seasoning ingredients to their preferences.

Kruusim ä e said the black market of electronic smoke in Estonia is like a stool, with high consumption taxes, bans, e-commerce bans and other restrictions. Now, we are getting rid of the black market tax on consumption tax to improve the competitiveness of legitimate e-cigarettes. It is in the common interest of everyone to provide more diverse choices for adults to reduce the harmful products to quit smoking.

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