The Riigikogu passed a bill on Wednesday according to which the planned 10-percent excise duty hike on cigarettes scheduled to take effect in 2020 will be reduced to a 5-percent hike, and production limits for small breweries will be increased.
The bill was passed with 83 votes in favor, none against and no abstentions.
The planned 10-percent excise duty hike for 2020 will be lowered to 5 percent in order to continuously curb cross-border trade with Latvia. The bill also outlines yearly 5-percent excise duty increases from 2021-2023.
The increase in the excise duty on smoking tobacco will remain unchanged in 2020 and increased 8.3 percent in 2021; excise duty receipts from smoking tobacco should account for two thirds of the minimum yearly tax inflow from cigarette sales. The excise duty on smoking tobacco is also set to increase 5 percent in 2022 and again in 2023.
According to the bill, production limits for small breweries will be increased from 600,000 liters to 1.5 million liters per year in order to provide business-owners the opportunity to make plans for long-term investments.
Editor: Aili Vahtla