Estonia, Financial Services, Taxation

Ivari Padar.

“We will delay lowering of the income tax. We will decide, how long should this be postponed. It is my proposal that tax amendments be postponed until the Euro will be adopted,” said Padar.

After the cabinet meeting the minister noted that the debate was “hard and very long”.

“It could be said that most of the extra revenue package has been found initial approval by three political parties, but we clearly have plenty of conflict left,” he added. Padar explained that the disputes concern 1-2% of the State budget volume, but this final agreement is the most difficult to reach, as is the case in every State budget.

“The exceptional rates on value added tax are still unresolved and the extent to which they should be implemented,” said Padar, adding that the tax on registration of vehicles will also be discussed.