A thriving black market for e-juice prompted the Estonian government to react. As of April 2021, the tax on e-liquid will therefore be temporarily suspended and further investigated.
"This provides opportunities for Estonian vejp companies to lower the prices of their products, thus reducing illegal trade at the border" says Tarmo Kruusimäe, chairman of Riigikogu's smoke-free Estonia support group to err.ee magazine.
Since 2018, Estonia has taxed e-liquid in the same way as tobacco products. The government has taken a hard line against smoking and has not seen e-cigarettes as a welcome alternative to tobacco smoking.
Many smokers die in Estonia
The decision means that e-liquid will be exempt from taxation for two years. During that time, Tarmo Kruusimäe hopes the government will find a more sustainable solution to reduce smoking in Estonia. At the same time, he wants the government to find a way to balance the interests of consumers and retailers in future legislation.
"Estonia ranks third in Europe in terms of smoking-related deaths. Proven less harmful alternatives to cigarettes help smokers quit. Just by offering the alternatives, it affects the health of the Estonian people" says Tarmo Kruusimäe.
Sweden further increases the price of e-liquid
The EU currently does not impose any requirement to tax e-liquid or vejp products. However, at the same time, it is possible for individual countries to impose taxes on nicotine products. Sweden started taxing nicotine-containing e-juices in 2018 at 2 SEK/ml. From 2021 onwards the Swedish government raises taxes on so-called "highly concentrated nicotine liquid" (15-20mg/ml) at SEK 4/ml.
