Baltic States – CIS, Estonia, Good for Business, Legislation, Transport

The lives of hundreds of cross-border commuters who used to bring as much motor fuel as they could on a daily basis from Russia were made more difficult by the Tax and Customs Board at the end of June when a new policy was adopted and drivers entering the country were asked to declare the fuel in their tank and litres that were not necessary for reaching their destinations were subjected to excise tax.

The head of the customs operations department of the Tax and Customs Board Urmas Koidu stated that the objective of charging excise tax on excess fuel from drivers was not to collect extra revenue to the State budget, but rather to make border queues disappear. This objective has been achieved in less than a month and a half.

Also, more than 45,000 euros in excise tax revenue has been collected into the State budget.

According to Koidu, initial analysis indicates that the number of times former border commuters crossed the border has fallen drastically, particularly among those who travelled to Russia and back for the purposes of importing fuel.