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Ceturtdiena 20.02.2020 | Name days: Smuidra, Vitauts, Smuidris
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Estonia confirms alcohol U-turn to recover booze tourists from Latvia

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As Estonia tries to recover its alcohol customers lost to neighbouring Latvia due to high excise duty, the parliament in Tallinn has passed a 25% cut in excise duty rate.

Estonian public broadcaster ERR reports that the bill was passed on Thursday, June 13, in the Riigikogu by landslide.

In the final reading, the bill was passed by 70-9 MP in favour backing the cutting of the alcohol excise duty rates for beer, cider and hard liquor by 25% beginning July 1.

The amendments to the Estonian Alcohol, Tobacco, Fuel and Electricity Excise Duty Law, which was introduced by the coalition parliamentary groups of Isamaa, the Conservative People’s Party of Estonia (EKRE) and the Centre Party, are aimed at reducing cross-border trade of Estonians buying their drinks much cheaper in northern Latvia.

Importantly, the Riigikogu’s Finance Committee of the Riigikogu made an addition to the bill aimed at preventing excise goods on which duties have already been paid in Estonia from being transported to another member state and then returned to Estonia in order to apply the new, lower excise duty rate.

Consequently, products, which have already been released for consumption in Estonia will be subject to the excise duty rate in force upon their initial release.


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