Coalition May Tap Eesti Energia Dividends in VAT Dispute ({{commentsTotal}})

News
News

The government coalition is considering increasing the amount of dividends it will take from state-owned power company Eesti Energia in order to patch a 24-million-euro budgetary hole left by VAT deductions on company vehicles.

The government had proposed in its 2014 state budget to the VAT deductions permitted for company vehicles. Currently, business can deduct the full 20 percent VAT on purchases of cars used for work. The proposed reform would have reduced the allowed deduction by half.

However, after resistance from interest groups, Parliament's Finance Committee decided to throw out the measure.

Finance Minister Jürgen Ligi has fought to preserve the measure, but the government is now being forced to consider plan B.

The government had decided a month ago to reduce the amount of dividends it would take from Eesti Energia this year from 74 to 35 million euros, reported Eesti Päevaleht.



{{c.alias}}
{{c.createdMoment}}
{{c.body}}
{{cc.alias}}
{{cc.createdMoment}}
+{{cc.replyToName}} {{cc.body}}
No comments yet.
Logged in as {{user.alias}}. Log out
Login failed

Register user/reset password

Name needs to be fewer than 32 characters long
Comment needs to be fewer than 600 characters long
{{comment.captcha.word.answer}}

news.err.ee

Opinion
Estonia’s way into the future isn’t a race

There is a lack of connection between the Estonian state, and the people who live here. While it expects a lot of the state, Estonian society doesn’t seem ready to contribute, writes Viktor Trasberg.

Lotman: Security academy would be crucial Estonian identity point in Narva

In an opinion piece published by Eesti Päevaleht, Tallinn University professor Mihhail Lotman found it important to overcome the mental barrier separating Ida-Viru County from the rest of Estonia.

About us

Staff & contacts | Comments rules

Would you like to contribute an article, a feature, or an opinion piece?

Let us know: news@err.ee