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Riigikogu rejected the legislative bill on reducing the tax rate onfoodproductsfoods

Рийгикогу отклонил законопроект о снижении налоговой ставки на продукты питания

On Wednesday, the Riigikogu rejected in the first reading a bill initiated by the faction of the opposition party EKRE, which would reduce to five percent the rate of tax on turnover of food. Fruit and vegetable department of a large

grocery store. Fruit and vegetable department of a large grocery store. Photo: Elmo

Elmo Riig / Sakala

On Wednesday the Riigikogu rejected the first reading of a legislative bill initiated by the faction of the opposition party EKRE, which would reduce to five percent the rate of tax on turnover of food.

The

Riigikogu voted 52 deputies against the Riigikogu, against 17. So the legislative bill was excluded from the procedure.

The government said that reducing the rate of tax on turnover of food would be too expensive for the state budget and, considering the state of the finances of the country, impractical.

According to current legislation, the rate of tax on the turnover of food is 22%, and will>increase to 24% on July>1.

In a explanatory letter the initiators of the legislative bill wrote that the legislative bill would ensure affordability of food and domestic potatoes, fruits and vegetables for the population. “There will be increased freedom of action in the market and legal base for rural micro- and small enterprises in the market,” the say the authors of the legislative bill from EKRE.

The Party added that the benefit of the taxonturnoveronfoodsisnotinonlyfourстранахЕС-помимоЭстонии,вДании,БолгариииЛитве.

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