Estonian VAT rise fails to win support
Wednesday June 17, 2009
Plans to increase the rate of VAT in Estonia have failed to win major backing, according to reports.
According to Baltic Business News, Aripaev reports that the country’s parliamentary finance committee has not given its support to the proposed increase of two per cent, which is intended to come into force next month.
A member of the committee, social democrat Eiki Nestor, claimed that a vote on the issue finished level on five votes to five.
"The Greens were not in favour of raising VAT," he claimed to the news provider.
"We are running out of options for finding revenues. The Ministry of Finance is very nervous."
Another country where the VAT rate may soon be increased is Serbia, as Reuters reports that the International Monetary Fund has suggested such a move could offset the country’s fall in revenue.