Finance Ministry considering dropping tax exemptions on home loan interest ({{commentsTotal}})

News
News

Tax on mortgage interest could be restored after the elections, after having been deductible for 12 years, said Finance Minister Maris Lauri.

Lauri, who represents the Reform Party, told ETV tax on home loan interest could be restored as OECD and the Bank of Estonia have both advised the government to cancel the exemptions.

“I personally believe this should be tackled. But I must emphasize that if such a decision is taken, realistically it will take a few years to enter force,” Lauri said.

The coalition partner, the Social Democrats, said they would not rule out such a move but would not take the initiative on the subject. “This is not a fundamental thing but right now I can tell you the Social Democrats do not have it in their sights to find cover for promises,” MP Rannar Vassiljev, head of the Finance Committee.

Center Party MP Kadri Simson said her party would not back cutting the tax exemption as it helps people who have had to purchased their own homes.

IRL took a similar stance.

“We see this as giving state help to people and as a means to stimulate the real estate market,” IRL's Sven Sester said.

On average, the state refunded 120 euros in tax paid on home loan interest in 2013.

Editor: L. Viirand, J.M. Laats



{{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
Independence Day: 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