Estonia, Legislation, Markets and Companies, Taxation

The prime minister said in an interview to national radio that the government coalition agreement contains different ideas of how to encourage entrepreneurship and they are willing to implement them. One idea is to implement a small businesses license fee. "We are considering the introduction of license fee for very small companies, which would relieve them of payment of the rest of taxes," said Rõivas.

He added that this way, the administrative and tax burden of small companies would be reduced. "I'm not sure how easy it is to do, but we are ready to analyze it," he said.

Rõivas pointed out that lowering the social tax and raising income tax-free minimum is one step towards reducing labour taxes. Lowering social tax by 1% has been criticised by entrepreneurs that businesses do not really benefit from it. Rõivas, said that talking to entrepreneurs at the general meeting of the Chamber of Commerce last week he still received a lot supportive messages. "They said that the social tax fall should not be ridiculed. The step is not as long as we would like, but it is a step in the right direction," he said.