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Estonian state will be deprived of 56 mln euros due to illegal cigarettes in 2012

Juhan Tere, BC, Tallinn, 05.11.2012.Print version
The Estonian state will be deprived of an estimated 56 million euros of budgetary income in the form of tobacco excise tax and VAT due to illegal cigarettes in 2012 as the share of illegal tobacco products continues to be around 25% in the fourth quarter, LETA/Postimees online reports.

According to a study by research agency A.C. Nielsen, the majority of illegal cigarettes are brought to Estonia from Russia and some from Byelorussia.

 

The Estonian Market Research Institute has estimated the share of illegal cigarette market at 24-29% in 2011 and the estimated tax loss at 61.3 million euros.

 

Estonian Tax and Customs Board (TCB) PR manager Ivi Papstel told Postimees that fight against illegal goods, including smuggled cigarettes is one of the priorities of the board. As the result of customs checks, over 5.1 million illegal cigarettes were discovered in the first half of this year. In addition to that, the staff of TCB investigation department found another 8.7 million cigarettes in the first half of this year in the course of criminal proceedings. The largest find, 8.5 million formed Marlboro and LM cigarettes, were found in March in a container that arrived from China.






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