
The introduction of a single non taxable income of 700 euros is planned for 2026 year, but in the light of the necessary increase in spending on defense the implementation of this plan may be
postponed, writes Rus.ERR. Wallet. Illustrative Photo Photo: Shutterstock
The introduction of a single non taxable income of 700 euros is planned for 2026 year, but in light of the necessary increase in expenditure on defense the implementation of this plan may
be postponed, writes Rus.ERR.
The called “tax horb” or increase in the rate of income tax by the measure of increase in income, under the budget strategy and the legislation enacted last year should be eliminated in 2026 .
But now, when the need to increase spending on the defense to 5%, that is, by 500-600 million euros, the implementation of this plan may be postponed.
Although the chairwoman of the financial commission of the Riigikogu, Anneli Ackermann Anneli Ackermann did not confirm or disprove this option, She always recognized that the cancellation of the current system would cost the practically the same amount.
The search for possible options for increased spending on defense will be discussedinthenearesttimeattheleveloftheEstoniangovernment,andattheEU level.
TheEU