Next alcohol excise duty hike enters into force
The excise duty on alcohol was increased in Estonia as of Thursday by half the initially planned amount.
The excise rate on the alcohol by volume (ABV) in beer increased from 15.52 cents to 16.92 cents per liter.
The rate on wine and fermented beverages with an ABV of up to six percent increased from 77.44 cents to 84.41 cents per liter, while the rate on wine and fermented beverages with an ABV exceeding six percent rose from 123.18 cents to 147.82 cents per liter.
The alcohol excise duty hikes scheduled for 2019 and 2020 will remain their planned amounts of ten percent, and 20 percent for wine and fermented beverages with an ABV of up to six percent.
The Riigikogu in January passed a bill to amend the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act, according to which the excise duty hike to enter into force on Feb. 1 would be reduced by half. According to the bill, the hike in the excise duty on beer, other alcohol, wine and fermented beverages with an ABV of up to six percent planned for 2018 would be reduced by half.
In order to cover the gap in the budget created by the reduction in the planned increase, the Estonian government intends to take €9 million of additional income from the State Forest Management Centre (RMK) this year.
An excise duty of €0.20 per milliliter of liquid was imposed on e-cigarette liquids on Jan. 1. The excise duty taxes both e-liquids that contain nicotine as well as those that do not. The excise rate on cigarettes was also increased by eight percent.
Editor: Aili Vahtla