The Riigikogu, the unicameral parliament of Estonia, has voted in favour of raising excise duties on tobacco products and alcohol, reports ERR.

The Riigikogu voted to pass the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act and the Act Amending the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act and Other Acts, put forward by the government which will see excise duties on tobacco and alcohol products rise. 57 of the Riigikogu members voted in favour of the bill and 35 MPs voted against, reports ERR.
Excise duties on cigarette and smoking tobacco excise will continue to rise by 5 per cent in 2024 to 2026. Excise duty on tobacco liquids and the minimum excise duty payable on cigars and cigarillos will also increase by five per cent per year for the next three years.
Ahead of its second reading the government also included in the draft law that the maximum retail price of cigars and cigarillos will be reported with a precision of 10 cents instead of 50 cents, as previously outlined, if the cost is EUR 10 or below, reports ERR. The law will also remove the planned excise duty increases on special diesel fuel meaning the rate will remain at EUR 21 per 1,000 litres.