Estonia considers VAT rise
Wednesday May 27, 2009
Plans to increase the rate of VAT offered in Estonia are being considered by the country’s government, it has been suggested.
According to Baltic Business News, it has been reported by Postimees that ministers hope to collect extra revenues by increasing the current rate of tax from 18 to 20 per cent.
It is believed that the government would like to raise around 2.7 billion kroons (£0.15 billion) by raising VAT and also abolishing unemployment benefits.
Ivari Padar, the former minister of finance and a leader of the country’s Social Democrat party, said the issue of increasing the tax had caused disputes between the nation’s politicians.
He added: "Raising VAT rate would hurt especially lower-income people."
Earlier this month, it was revealed that the Hungarian government is to increase its rate of VAT from 20 to 25 per cent from the start of July.