Tobacco product prices to rise every year from 2020 to 2023

Packs of cigarettes with health warnings displayed at a store.
Packs of cigarettes with health warnings displayed at a store. Source: (Mihkel Maripuu/Postimees/Scanpix)

Taxes on tobacco products will increase from January 2020 if plans put forward by the Ministry of Finance are implemented later this year.

The new legislation will see tobacco excise increase by 5 percent each year instead of a 10 percent increase in total from 2021 to 2023.

If agreed by the Riigikogu before the end of this year, in 2020 the excise tax on a pack of cigarettes will increase to €2.19, ERR calculated. This means the average price of a pack of cigarettes will increase from the current €4.09 in 2019 to €4.27 in 2020.

Small breweries will also be allowed to increase production from 0.6 million liters to 1.5 million liters per year.  Until the limit is reached a small beer producer may benefit from a 50 percent reduction in excise duty, ERR reported.

Finance Minister Martin Helme (EKRE) called this step an optimization of excise policy and said he wanted to encourage small scale beer production.

If approved, the amendments will enter into law on Jan. 1, 2020.


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Editor: Helen Wright

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