Friday June 26, 2009
Increasing the rate of VAT in Estonia will not have a negative impact on the country, it has been claimed.
The country’s prime minister Andrus Ansip has stated that it is wrong for companies to presume that upping the tax could lower the consumption of goods.
According to Baltic Business News, E24.ee claims the leader also said it is not true that similar moves have harmed other countries.
"I don’t share the opinion of those people, who say that higher VAT in Latvia and Lithuania reduced turnover in these countries remarkably," he explained at a press conference.
"That is not true and one shouldn’t think of that of Estonia."
The decision to increase the rate of VAT charged in the country to 20 per cent was confirmed last week, after a majority of 54 MPs voted in favour of the move after a reading of the amendment in parliament, according to Aripaev.
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.
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.
Tuesday June 2, 2009
An increase in the rate of VAT in Estonia could harm the country’s pensioners, it has been claimed.
The Social Democrat chairman Juri Pihl has claimed the plans from the coalition between the Reform Party, PRU and the People’s Union would harm those on low incomes.
According to The Baltic Course, Mr Pihl told LETA that the move would "take money away most perceivably from the pockets of people who put their entire income into consumption right away".
He added that plans to suspend a rise in unemployment insurance were not popular, as the concept was created to "guarantee that people would be able to manage if they lose their jobs, not to guarantee the balance in the government sector".
According to Baltic Business News, the move to increase VAT from 18 to 20 per cent would help the government collect extra revenues.
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.
