Wednesday, May 20, 2009

Estonian excise duties on Fuel and Tobacco raised

Taxes on fuel and tobacco will increase by 5%. Yesterday, the government made the decision to raise fuel excise duty by the 1st of July whereas tobacco taxes will increase only by January 2010.

Current information on Estonian excise duties can be found here

The goal of the measure is obviously to generate more revenues. However, did they take into account that this decision might spur people to stop smoking or use less their cars?

Increasing taxes are usually not popular decisions (even though in Estonia people are not eager to show their anger...) but in that case there might (limited though) be social and environemental benefits.

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