Palts: To Reduce Black Market, E-Cigarette Bans Should Be Partially Lifted
Experts warn that Estonia's planned tobacco law amendments may further expand the already massive illegal market for e-cigarettes and nicotine pouches, and suggest lifting some restrictions as a solution.
Estonia's black market for nicotine products has reached unprecedented levels. Experts estimate that illegal e-cigarettes account for up to 80% of the total. The Ministry of Justice's planned amendments to the Tobacco Act, which would tighten regulations, could further strengthen the shadow economy, industry representatives warn.
Mait Palts, CEO of the Estonian Chamber of Commerce and Industry, believes that to reduce the black market, the ban on some products should be lifted rather than adding new restrictions. "If a product is legally available and its sale is controlled, the black market share decreases. Most people prefer to buy legally if possible. No one deliberately chooses a product of unknown origin if they can buy a tested one."
E-cigarette sellers claim they previously had the ability to control buyers and prevent sales to children, but politicians ignored their warnings about the emergence of a black market. "We warned the state almost eight years ago that if regulation is introduced without careful development and industry participation, the consequences would be as we see now," says Raiko Eero, CEO of Easysmoke. He is confident that new restrictions will only bolster the illegal market.
The Tax and Customs Board notes that they frequently intercept illegal e-cigarette batches that are more addictive than permitted ones, such as liquids with 30 mg of nicotine instead of the allowed 2 mg. "For nicotine pouches, there are currently no restrictions on strength or flavors, but we still find products on which tax has not been paid. So it cannot be said that the absence of restrictions guarantees the absence of an illegal market," says Ekaterina Nikitina, head of the excise department.
Last year, over 7.5 tons of nicotine pouches were seized. However, the black market exists as long as there are solvent customers. If flavored liquids reappear in legal stores, most people will choose to buy them there, even if slightly more expensive, rather than an unknown product from a stranger. People who quit smoking do not want to return to the taste of tobacco.
The Ministry of Justice's new version of the Tobacco Act plans to introduce strength limits for nicotine pouches and fines for both buyers and sellers of illegal nicotine products.
