Teema: FW: Cigars Excise
From: M. P. Ramnani <
[email protected] <mailto:
[email protected]> >
Sent: Monday, September 9, 2024 5:48 PM
To: Erle Kõomets <
[email protected] <mailto:
[email protected]> >
Cc: Viljar Lubi <
[email protected] <mailto:
[email protected]> >
Subject: Cigars Excise
Tähelepanu! Tegemist on välisvõrgust saabunud kirjaga.
Tundmatu saatja korral palume linke ja faile mitte avada.
Dear Ms. Koomets,
I was referred to you by Ambassador Viljar Lubi regarding the discussion of excise tax on cigars.
A few years ago, we explored ways to streamline the legislation and make it more efficient for all parties involved. Currently, the excise regime includes a 10% tax on retail price and a specific excise of €0.151 per cigar.
The challenges we face are:
1. We manage between 400-500 stock keeping units (SKUs), each with a distinct selling price. This makes handling and requisitioning excise stamps quite cumbersome.
2. The Estonian market for cigars is relatively small. Cigars are a lifestyle product rather than a commodity, appealing to a particular demographic and not subject to the typical price elasticity of demand.
3. We propose a single specific tax, similar to the model in Latvia, where the excise per cigar is €0.16. In our previous meeting with the Ministry of Finance, we suggested an excise based on the weighted average selling price of a cigar—around €0.60 to €0.75. We believe this would be a fair compromise, reducing the administrative burden and creating a more efficient system for both businesses and the government, while also supporting our retailers.
4. Streamlining the excise rates into a single rate would reduce the overall administrative load and we look for a solution which is favourable for all. The rate at which the excise rate could be set at, would of course be based upon your calculation and assessment.
I would welcome the opportunity to meet with you to discuss this further. Please feel free to contact me with any questions or clarifications you may need.
Thank you for your kind attention and consideration.
Best regards,
Mahesh
Mahesh P. Ramnani
(Director)
Rasa Trading Company AS
101, Kollane 4-6
Tallinn 10147
Estonia
Mobile: +3725130998
Office: 00 372 6014650
[email protected] <mailto:
[email protected]>
[email protected] <mailto:
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www.rasatrading.ee <http://www.rasatrading.ee>
www.chaorganictea.com <http://www.chaorganictea.com>
www.theoaklounge.com <http://www.theoaklounge.com>