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Estonia losing big on illegal vodka, cigarettes 

Estonian state budget loses out on around half a billion kroons a year from illegal tobacco and alcohol trade, the Institute of Economic Research announced on April 28.

Even though the markets for both illegal alcohol and tobacco products are shrinking, the state still suffers significant losses from unpaid sales and excise taxes.

According to the institute, some 200 million kroons for illegal (homemade and smuggled) alcohol and 275 million kroons for illegally sold cigarettes pass by the state coffers annually.

Illegally sold cigarettes, mostly smuggled from Russia, make up 22 - 25 percent of the whole Estonian cigarette market and are usually sold on the streets, open markets and through personal contacts.

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