Salakaubad

Salakaubad is a term used in Estonian to refer to goods that are subject to excise duties. These are specific types of products that are taxed at a higher rate than general goods due to various policy reasons, often related to health, environmental impact, or revenue generation. Common examples of salakaubad include tobacco products, alcoholic beverages, and fuel. The excise duty is levied on the production or importation of these goods, and its cost is typically passed on to the consumer.

The purpose of excise duties on salakaubad can be multifaceted. For tobacco and alcohol, taxes are often intended to discourage consumption by making them more expensive, thereby aiming to improve public health. In the case of fuel, excise duties are frequently used to fund infrastructure projects, such as road maintenance, or to incentivize the use of more environmentally friendly transportation options. The revenue generated from these duties forms a significant part of a government's income.

The handling and taxation of salakaubad are regulated by national legislation and, within the European Union, also by EU directives. Companies that produce or import these goods must comply with strict regulations regarding registration, reporting, and payment of duties. Smuggling or illicit trade of salakaubad is illegal and carries penalties, as it deprives the state of tax revenue and can also lead to unregulated products entering the market, potentially posing health or safety risks. The term itself simply denotes a category of goods subject to this specific type of taxation.