2024-07-20 14:09:53
It is expected that from July 2025 the value added tax (VAT) will be increased by two percentage points to 24%, and from January 2026 the personal income tax will also be increased by two percentage points to 24%.
Excise taxes on alcohol, tobacco products and gasoline are also planned to be increased.
An additional 2% corporate profit tax will be introduced from the beginning of 2026.
This package of tax increases is called the “safety tax” and will be in place until the end of 2028.
“The need for further tax increases or changes will be determined by the government, which will start working after the Rīga council elections in 2027,” the coalition agreement states.
The new coalition promises to ensure that national defense spending is at least 3% of gross domestic product, excluding the cost of hosting allies.
It has already been reported that Estonian Prime Minister Kaja Kallas, who has been nominated as a candidate for the position of High Representative of the European Union’s foreign and security policy, has resigned. Therefore, the ruling coalition parties agreed on a new coalition agreement and formed a new cabinet of ministers.
2024-07-20 14:09:53