Latviski English По-русски
Sunday 26.01.2020 | Name days: Agneta, Agnis, Ansis

Cross-border trade between Latvia and Estonia declines

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU

Estonia’s Finance Minister Martin Helme has announced that excise tax revenue from the first month after the rate’s reduction has increased 40% when compared to July 2018, whereas cross-border trade with Latvia has reduced.

«As we can see, excise tax revenue in January, March, May and June was below previous budget expectations. Prior to tax reduction there was a downward pointed tendency for revenue,» Helme announced on social network sites.

June’s decline of revenue is associated with the expected excise tax rate reduction, said the minister.

«In July, we had observed inexplicable exceeding of predictions when compared to both budget estimates and spring’s estimates. The increase when compared to last year’s July was 40%. For strong alcohol it was 174%,» reports Estonia’s finance minister.

He added that cross-border alcohol trade with Latvia has reduced.

«The numbers aren’t big, but it is worth mentioning that cross-border trade is measures in vehicle movement, not the amount of goods brought from Latvia,» the minister’s post states.

The number of Finnish tourists visiting Estonia has increased by a couple of percent, whereas the amount of goods they purchase has doubled. The situation is the opposite on the border with Latvia – the number of Estonian residents travelling to Latvia has declined more slowly than the amount of goods they purchase, Helme reports.

He added that alcohol prices in Estonia had declined in July. August is expected to continue this trend.

«A couple of months should make it clear that our tax rate reduction has increased this year’s tax revenue when compared to what was previously predicted, which was based on the old tax rate. July’s data is promising,» Helme said.

Estonia’s retail trade data shows that trade of strong alcoholic drinks in July had increased 20%.

«Excise tax reduction has had a positive effect on alcohol trade, sales of alcoholic drinks have increased by one-fifth and sales of light alcoholic drinks has increased slightly less,» BNS agency was told by Prisma Peremarket sortiment director Kaimo Niitaru.

Since 1 July, Prisma has reduced prices for more than 400 alcoholic drinks. Niitaru notes that prices will continue reducing until the end of the year, because it is first necessary to reduce stores procured at higher tax rate.

He adds that Prisma stores have reduced prices of light alcoholic drinks by an average of 0.14 EUR/0.5 l, whereas the average reduction of prices of strong alcoholic drinks has reduced 1.5 EUR/0.5 l

Retailer Coop had reduced prices in accordance with excise tax rate and warehouse stores in the first week of July. Prices have declined for more than 900 products.

Coop Eesti communication manager Martin Miido notes that sales of strong alcoholic drinks had increased by a quarter in July, whereas the increase of sales of light alcoholic drinks was slight.

Data compiled by Maxima shows that sales of strong alcoholic drinks in July, when compared to the same month of 2018 had increased 20%. When compared to June – sales had increased 15%.

Maxima Eesti sales manager Kadi Lainelo explains that this year’s summer was cooler than last year’s, whereas sales of light alcoholic drinks has remained unchanged. Traditionally colder summers result in less light alcoholic drinks being consumed. This is why it is allowed that excise tax reduction is observed in this category. She adds that the volume of sales of non-alcoholic drinks has significantly increased, which means «consumers are becoming more responsible and more often pick non-alcoholic products».

On 1 July Maxima reduced prices for 17 most popular products, doing it at the expense of profit. Price reduction continued over the course of the month and will continue reducing in the coming months.

As previously reported, Estonia reduced excise tax for beer, cider and strong alcoholic drinks by 25% on 1 July 2019.

Leave a reply

Development of areas along Rail Baltica line will require investments worth EUR 300 million

In order to implement infrastructure development projects along Rail Baltica line in Riga, it will be necessary to secure investments up to EUR 350 million in the next ten-year period, as reported by Riga City Council chairman Oļegs Burovs.

Olainfarm shareholders fail to convene due to lack of quorum

Because of the lack of quorum, the extraordinary meeting of Olainfarm shareholders originally scheduled for Friday, 24 January, did not take place. It was planned to discuss changes to the company council during this meeting, as reported by the company’s representative Ieva Lapiņa-Ennīte.

EY: investors more optimistic about Latvia’s economic competitiveness

Last year, investors’ opinion of the competitiveness of Latvia’s economy improved for nearly all indexes, as reported by EY Latvija representatives.

Bulgaria accuses three Russian citizens for poisoning of arms producer

Three Russian citizens have been charged by Bulgaria over the attempted murder of an arms producer and another two Bulgarians using a poison. One survivor believes there is a link with the poisoning of the Skripals in the United Kingdom.

Ignoring sanctions, Ventspils City Council approves budget created under Lembergs’ watchful eye

In spite of sanctions imposed by USA, Ventspils City Council approved the city’s budget for 2020, which came to be under absolute influence from Aivars Lembergs, on Thursday, 23 January, BNN was told by opposition deputy Aivis Landmanis.

Estonia eyes one-year prison sentence for first-time drunk drivers

Estonian government ministers have proposed harsher sanctions for drunk driving. Their initiative comes after three people got killed in a crash, where a heavily intoxicated driver was involved.

Latvian residents trust National Armed Forces the most and the Saeima the least

Latvia’s residents trust the country’s National Armed Forces and the president the most and the Saeima the least, according to the survey performed by Latvian National Security Academy’s Security and Strategic Research Centre.

In China, coronavirus claims more lives as transport limitations put in place

The Chinese outbreak of a new strain of coronavirus has reached the death toll of 26 people, meanwhile, authorities are trying to keep it from spreading introducing transport movement limitations in at least 10 cities.

Information about VDD new office building’s construction costs is a state secret

Although some media have mentioned different amounts of money the construction of a new office for the State Security Service at the location of former Marss cycling track may cost, the service reports that this information is considered a state secret.

Kariņš: Latvia is no longer the younger brother – our country’s voice is heard

Latvia is no longer the younger brother on the international arena – our country is heard and its opinion is taken seriously, said Latvian Prime Minister Krišjānis Kariņš at annual foreign policy debates on Thursday, 23 January.

Poland passes law on limiting public actions, statements of judges

The Polish Sejm has passed a draft law that sets forth limiting the say of judges over justice appointments, court reform and politics. The limitations have been widely criticised abroad.

Linkaits: banks once again service Ventspils Freeport terminals

The situation with Ventspils Freeport is gradually becoming more relaxed. On top of that, banks once again service port terminals there, as Latvian Transport Minister Tālis Linkaits affirmed in a conversation with journalists on Thursday, 23 January.

Aivars Lembergs picks ex-prime minister’s freelance advisor Grudulis as his lawyer for debates

The suspended Mayor of Ventspils Aivars Lembergs, who is also accused of committing serious crimes and is under US sanctions, has picked once the prime minister of Latvia Māris Kučinskis’ freelance advisor Māris Grudulis as his lawyer for debates in court, as was announced in court on Thursday, 23 January.

What is Lithuanian President’s main reason to skip Jerusalem Holocaust forum?

Lithuanian President Gitanas Nausėda has unexpectedly flip-flopped on where and how to commemorate the 75th anniversary of the liberation of Auschwitz-Birkenau death camp in Poland. First, he said he will attend the commemoration in Jerusalem, but then changed his mind to pay homage to the Jewish victims in Auschwitz, in Poland. The reason? Well, there is no clear official reason for that – President’s Office did not provide one.

Audit: Rail Baltica slowed by poor risk management and slow progress with municipalities

Delays and cost increase of Rail Baltica project is heavily affected by no risk management and no strategy, as well as slow progress in cooperation with municipalities and passive alienation of properties, Latvian State Audit concluded in its latest report.

China stops public transport in two cities over coronavirus

In China, a new strain of coronavirus has claimed the lives of 17 people. To keep it form spreading, local authorities have stopped the public transport to and from the cities of Wuhan and Huanggang.

BNN investigation | Rebenoks and Krieķis may have plans to return to Olainfarm board despite ties to serious crimes

Ex-Olainfarm officials Mārtiņš Krieķis and Pāvels Rebenoks, the latter also serving as Latvian Economy Minister Ralfs Nemiro’s advisor, may return to the company’s board to, possibly, continue walking «well-travelled path» paved with non-transparent deals, according to information available to BNN.

In Estonia, forgetting to register child’s name can lead to municipality choosing it

Estonian law obliges parents to register the name of their child in a month’s time after giving birth. In the unlikely case of them being late, the law opens right to a local municipality to choose it.

Change of concept? Viesturs Kairišs becomes Dailes Theatre’s artistic director

Dailes Theatre’s board member Juris Žagars has picked Viesturs Kairišs as the theatre’s new artistic director, as journalists were told by Žagars on Thursday, 23 January.

Lukashenko: Belarus needs to diversify its oil imports, introducing Baltic supplies

As Minsk and Moscow are in talks to solve a dispute over the continuation of oil imports from Russia, Belarusian President Alexander Lukashenko has said that Russian supplies could be cut to 30-40% of Belarus’ total imports.

Minister does not exclude possibility of number of municipalities in Latvia increasing

The Administrative Territorial Reform offers reducing the number of municipalities to 39 in Latvia. Still, it is possible there may be one or two more, said Latvian Environment Protection and Regional Development Minister Juris Pūce in an interview to LTV programme Rīta Panorāma on Thursday, 23 January.

Thirteen people die from influenza in Latvia

Three people died from influenza in Latvia last week, increasing the number of victims to 13 for this year’s flu season, according to monitoring data of acute upper respiratory tract infections published by Disease Prevention and Control Centre.

Lithuania tries to halt haulage firm exodus to Poland with new tax

Lithuania is introducing a new «exit tax» to keep road haulage firms from relocating to other European Union member states. The firms say that other ways of moving business abroad will be used.

Corruption fighters: corruption perception indexes decline in Latvia in 2019

Latvia’s positions had worsened slightly in 2019 in global anti-corruption coalition Transparency International composed Corruption Perception Index.

UK parliament passes draft Brexit law

In London, the draft law on the withdrawal of the United Kingdom from the European Union has been finally passed by the Houses of Parliament after years of inability of British legislators to decide on their preferred way out of the bloc.

Do NOT follow this link or you will be banned from the site!