Alcohol and tobacco tax to rise in Estonia next year

A previous decision, alcohol is to rise in price by ten per cent from the beginning of 2008. Now the government decided to raise the tax on alcohol by a further 20 per cent later in the year.

 
The tax on tobacco will rise in January, and in July, so that the price of
cigarettes will reach the minimum level required by the EU. In the same
connection the government decided to decrease the income tax rate from the
present 22 per cent to 18 per cent.
Cheap alcohol has been a major draw for Finnish travellers visiting Estonia,
and was a key reason why Finland felt forced to lower its taxation of alcohol
when Estonia joined the EU; Estonian EU membership meant that Finland could no
longer maintain personal import quotas for travellers arriving from Estonia.