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Estonian Parliament rejects bill to reduce food VAT

Estonia's Parliament, the Riigikogu, rejected a bill proposed by the opposition EKRE party to reduce the value-added tax (VAT) on food to 5%.

The bill was voted down in its first reading, with 52 members of the Riigikogu voting against it and 17 in favor, effectively removing it from further consideration.

The government argued that lowering the food VAT rate would be too costly for the state budget and was not feasible given the country's financial situation.

Currently, the VAT rate on food in Estonia is 22%, and it is set to increase to 24% starting July 1.

According to EKRE's explanatory statement, the proposed bill aimed to make food, including locally produced potatoes, fruits, and vegetables, more affordable for the population. It also sought to provide better opportunities for rural micro and small businesses.

The party also noted that only four EU countries, Estonia, Denmark, Bulgaria, and Lithuania, do not have reduced VAT rates on food.

Source: rus.postimees.ee

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