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Parliament Splits Up Smoking Tax
Parliament reformed a tax increase for tobacco products, splitting it up across a two-year span.
Those in favor of the change feared that a rapid tax hike may stimulate a more active black market for cigarettes.
The reform will raise the tobacco excise tax by 10 percent in both 2011 and 2012.
To boost the efficiency of penalties, the bill also more clearly defines what qualifies as a large quantity of contraband.
Last year, Estonians bought 800 million illegal cigarettes, amounting to tax revenue forgone of 51 million euros, according to the Institute of Economic Research.