
The opposition Estonian Conservative People’s Party (EKRE) initiated a legislation to reduce the tax on the turnover of food, but the government rejected
the initiative, writes Rus.ERR. Prices for food food in July were slightly decreased in June, but increased in comparison with the year ear earlier. Photo: Margus Ansu
Opposition Estonian Conservative People’s Party (EKRE) initiated a legislative bill on reducing the tax on turnover on food products,
but the government rejected the initiative, writes Rus.ERR.
According to EKRE’s estimate, the rate of tax on turnover of food should be reduced from 22 to 5%.
But the government didn’t support the legislative bill, considering that its implementation would lead to significant and ineffective spending on the state budget.
The Ministry of Finance estimates that these expenditures would amount to at least 400 million euros per year. The ministry alsoemphasizedthatthereductionofthetax ratehasonlyapartialinfluenceonprices.