Estonia, Financial Services, Legislation, Taxation, Transport

The associations say that as a result of decisions made by the state, the Estonian road haulage and transport sector has lost its competitiveness and is no longer sustainable. This year, some 100 million liters of motor fuel has been bought in neighboring countries instead of Estonia, they say.

The Estonian Logistics and Freight Forwarding Association, the Association of Estonian International Road Carriers, the Estonian Association of Motor Companies and the Estonian Oil Association are urging the parliamentary financial and economic affairs committees to open a discussion about the situation of road haulage companies, which are unable in the present tax and economic environment to compete with significantly more favorable conditions offered by neighboring countries.

So far this year an estimated 100 million liters of fuel has been bought by haulers in neighboring countries instead of Estonia, and this amount is set to rise to 130-160 million liters next year, according to the associations. This means 49 million euros in foregone taxes for Estonia in 2017 and up to 79 million euros next year.

As the first step to restore the competitiveness of the Estonian road haulage sector, the associations name a cut in the rates of the fuel excise duty to reduce inequality compared with neighboring countries. An alternative would be to introduce a tax exemption or tax refund for haulage businesses.

In addition, the associations wish the state to set out mechanisms to ensure that the road user fee is not levied on Estonian transport companies alone but would be paid also by foreigners using Estonian roads.