Green light for Estonian VAT rise
Friday June 19, 2009
Ministers in Estonia have voted in support of plans to up the rate of VAT charged in the country.
According to Baltic Business News, Aripaev reports that a majority of 54 MPs were in favour of the move after a second reading of the proposed amendment in parliament.
It is believed the two per cent increase to 20 per cent will up government revenues, but opposition leaders have claimed the move is a dangerous one.
Talking to the news provider, Vilja Savisaar, chairman of the Centre Party, said: "I cannot imagine what is the benefit of increasing the price of bread and milk during an economic crisis.
"It will not create any jobs nor help us overcome this economic crisis sooner."
AFP recently reported that the Lithuanian government has put forward plans to increase the rate of VAT charged in the country to 21 per cent.