Energy, Estonia, Financial Services, Taxation, Transport

"In its forecasts, the Ministry of Finance has counted with the impact of filling up abroad, and since the increase in the excise duty on diesel planned for next year was canceled, we expect the price difference with Latvia to narrow," Siiri Suutre, spokesperson for the ministry, told BNS.

She said that according to the latest forecast by the Ministry of Finance, inflow of money from the fuel excise duty is estimated to total EUR 530 million this year, compared with EUR 506 million in 2016. Inflow is estimated to rise to EUR 581 million in 2018, to EUR 602 million in 2019, to EUR 622 million in 2020 and to EUR 634 million in 2021.

Commenting on an announcement by Estonian hauler associations on Monday to the effect that the country is losing an estimated EUR 50 million of tax money due to higher fuel duties this year, Suutre said that the figure provided by the associations only reflects the negative impact from cross-border trade but does not take into account the additional income received as a result of higher duty on the fuel bought in Estonia.

The rate of the excise duty on diesel in Estonia is higher by 15.2 cents per liter than in Latvia this year. In the following years the difference is expected to narrow as a result of the evening out of tax rates, according to the Estonian ministry.

The Tax and Customs Board says that Estonia stands to lose in the region of EUR 20 million in taxes this year, not EUR 50 million as claimed by haulage industry associations, as a result of the purchase of motor fuel abroad, as by the end of this year motor fuel purchases abroad are estimated to have increased by 40 million liters.