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Peterson stated that in terms of timing of the proposal, the idea is a year late, as it would have been better if the party would have come up with it when it was still in the coalition. “In terms of the future, however, the tax exemption idea merits consideration,” he noted.

The Confederation of Trade Unions is of the position that all ideas that are directed to improving the situation for majority of people who work are worth considering.

Peterson emphasised that the proposal needs solid calculations in terms of the actual costs of the reform and potential sources of financing of it.

Thus far, trade unions in Estonia have supported the idea to make minimum pay exempt from income tax.

As reported, Pro Patria and Res Publica Union (PRU) organised a people’s assembly in Tallinn on Sunday, to discuss the party’s platform for the upcoming Parliamentary elections, writes LETA/National Broadcasting.

The central idea discussed that media channels focussed on involved exempting incomes below 500 euros from income tax.

According to the chairman of the opposition party Urmas Reinsalu, the objective of the tax exemption is to guarantee that people earning wages would be able to sustain themselves. According to him, it would be immoral to impose taxes on those who struggle to make ends meet.

“We wish to link income exempt from taxation with a person’s incomes so that the smaller the income the greater the amount that would be exempt,” said Reinsalu, explaining that it would be a more efficient approach in comparison with previous proposals made that involved with increasing income levels that are exempt from taxation.

The PRU Chairman estimated that the reform would involve approximately 300,000 individuals and would cost 120 million euros. Deputy Chairman of PRU Juhan Parts stated that the necessary funds for implementing the idea would be found within the current taxation system.

“It is probably not a good idea for us to keep lowering the overall income tax rate. We might look at some indirect taxes,” said Parts, adding that PRU does not support the situation whereby some types of alcohol are subject to lower taxes than other types of alcohol.

PRU aims to complete the drafting of its 2015 Riigikogu elections platform by November.