Tax Trend for 2014: Excise Hikes to Pay for Pensions ({{commentsTotal}})

Several tax changes are set to come into effect when the calendar clicks over to 2014: excise on tobacco and alcohol will increase and pensions will rise.

The excise duty on tobacco - a package of various rates for different products - will increase by 6 percentage points and the excise on alcohol by 5 percentage points, reported.

The increases will contribute to funding pensions, which will increase 5.8 percent - the largest hike in since 2008.

The tax-free minimum on pensions will also be shifted upward 18 euros to keep the average pension tax-free.

The average pension is forecasted to increase to 354 euros, which represents 90 million euros of additional expenditure in the state budget.

"Before we start looking at additional tax hikes, we have to deal with the black market," said Sven Kirspuu, head of the Finance Ministry's fiscal policy department.

Overall tax burden will decrease by 0.3 percent point to 32.1 percent.