Estonian Employers Confederation Calls for Reduction of Social Security Tax
The Estonian Employers Confederation has issued its third manifesto that calls for public consultations on the tax system, and the lowering of the state social security tax.
"Many of the proposals put forward in our previous manifestos have materialized. Perhaps the difference is that this time we are not just trying to advise the authorities on what to do, but also have a message to employers and employees," Toomas Tamsar, chairman of the Estonian Employers Confederation, told ETV's "Terevisioon".
Among other issues the manifesto discusses the so-called "average wage trap", or the fact that Estonia is no longer a country of cheap labor. People do not want to do menial jobs but are under not skilled enough to take on highly paid roles.
"The experience of world countries shows that those countries who have broken through the skilled labor barrier have done so by investing in their people. This might be the most important message for us to take away. [---] It is not a coincidence that the longest chapter of this year's manifesto - and we did cut it down quite a bit - is on topics connected to educations and qualifications."
In terms of taxes, employers propose a thorough revision and public discussions on the current system.
"Indeed, we propose a significant reduction in labor tax, more specifically the cutting of social security tax by a few percent. The need for this step is grounded in our concern for Estonia's competitiveness and a small decline in this index. Tax competition in the region is pretty sharp and this is where the suggestion originated from," he said.