The Estonian Ministry of Finance recently issued a notice announcing that starting from January 1, 2024, it will comprehensively adjust the tax policy for tobacco products. The main contents of the new policy include: using a unified new tax standard design, increasing the consumption tax rate for all categories of tobacco products, and implementing the minimum tax rate for cigars and small cigars for the first time.

Type of tax mark

There are 10 types of stamp duty labels for tobacco products, namely: cigarette tax label; Smoking tobacco tax code A; Tobacco tax code B for smoking cigarettes; Tax code L for tobacco products consumed through heating; Cigar tax label G; Small cigar tax label D; Nicotine containing tobacco oil tax code C; Nicotine free tobacco oil tax code H; Tobacco solid substitute tax standard E; Other alternative tobacco product tax labels K.

New tax standard

According to the new regulations, starting from January 1, 2024, tobacco products (including substitute tobacco products) that are allowed to be consumed must be stamped with redesigned stamp duty labels. From that date, tobacco products with tax labels that use the old design stamp duty labels will no longer be allowed to be consumed.

New Consumption Tax Rate

Starting from January 1, 2024, a new and higher consumption tax rate will also apply to all types of tobacco products.

Starting from January 1st, the fixed consumption tax on cigarettes will be increased to 100.50 euros per 1000 cigarettes, with a proportional tax rate of 30% of the maximum retail price of cigarettes, but not less than 169.10 euros per 1000 cigarettes. The consumption tax on smoking tobacco will increase to 112.40 euros per kilogram from January 1st. As the consumption tax rate on solid tobacco substitutes is the same as that on smoking tobacco, the consumption tax rate on solid tobacco will be increased to 112.40 euros per kilogram of smoking tobacco. Substitutes will also increase to 112.40 euros per kilogram of solid tobacco substitutes. The consumption tax on electronic cigarette oil will increase to 0.21 euros per milliliter of electronic cigarette oil, and the consumption tax on other alternative tobacco products will increase to 0.21 euros per gram of product. Like cigarette tobacco, heated non combustible tobacco products will also be subject to a unified tax standard and corresponding consumption tax rate. The minimum consumption tax for cigars and cigars will increase to 222 euros per 1000 cigars or cigars, while the fixed tax rate per 1000 cigars and the proportional tax rate of the highest retail price will remain unchanged.

Taxed products that are labeled with tax labels and allowed to be consumed before January 1 can continue to be sold and stored outside the consumption tax warehouse until March 31, 2024. Starting from April 1st, the sale and storage of these tobacco products outside the consumption tax warehouse will be prohibited.

The Estonian Ministry of Finance stated in its policy interpretation that adjusting the tax policy on tobacco products is aimed at reducing the consumption of tobacco products and protecting public health. At the same time, raising tax rates will also increase government revenue. Industry insiders believe that this tobacco tax adjustment is bound to lead to a general increase in the prices of tobacco products in Estonia, suppressing tobacco consumption. However, the specific increase still needs to be observed for the implementation effect, which may also encourage more smoking in Estonia

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Shenzhen Element Testing Co., Ltd. (referred to as Element) focuses on providing testing and compliance services for electronic atomizer enterprises.

The Element laboratory is equipped with dozens of advanced detection instruments and equipment, such as imported simulated smoking machines (Vaping Machines), liquid chromatography-triple tandem four stage liquid mass spectrometry (LC-MSMS), inductively coupled plasma mass spectrometry (ICP-MS), gas chromatography-mass spectrometry (GC-MS), inductively coupled plasma emission spectroscopy (ICP-OES), high-performance liquid chromatography (HPLC-DAD), gas chromatography (GC-FID/ECD/TCD), ion chromatography (IC) X-ray fluorescence spectroscopy analyzer (XRF), electronic cigarette life testing machine, pressure relief safety tester, pressure relief safety tester, glow wire tester, needle flame tester, IPX3, IPX4 test box, salt spray test box, constant temperature and humidity box, mechanical testing system, battery drop stacking testing machine, electrostatic discharge (ESD) tester, etc.

The staff of the Element laboratory all have a bachelor's degree or above and have worked in the field of testing and compliance services for many years. Among them, the engineers of the electronic atomizer project are the first batch of senior experts in China engaged in electronic atomizer testing and compliance services.

Element adheres to the research of laws, regulations and testing standards, continuously transmits the latest legal and regulatory information to customers, completes the method validation of new testing standards as soon as possible, and applies them to the testing of related products.