Social affairs minister wants new tax to help fund care services
Upon the suggestion of Minister of Social Affairs Tanel Kiik (Centre), next Thursday, the government will discuss the possibility of raising additional funding for care services by imposing a care insurance tax, which the minister suggests should equal 2 percent of one's income, half of which would be paid by the employer and half by the employee.
According to Kiik, this would mean the establishment of a specific tax that would be levied to cover care needs, similarly to how the Estonian Health Insurance Fund (Haigekassa) works, where disbursements are made directly to healthcare establishments, daily Postimees writes (link in Estonian).
"This should be a care insurance fund with a dedicated budget, in which case it would be clearly defined what is funded, to what extent, and what an individual's own contribution would be," Kiik explained.
While the matter will only just be discussed in the government next week, Isamaa, who promised tax peace in this spring's elections, is not in favor of introducing a care insurance tax; the Conservative People's Party of Estonia (EKRE), meanwhile, will not comment on the potential new tax until it has familiarized itself with the social affairs minister's proposal.
While the opposition Reform Party finds that solving care-related problems with a new labor tax is a slippery slope, the Social Democratic Party (SDE), meanwhile, is prepared to discuss the possible new tax, although it finds that increasing taxes isn't the answer, as the problem in the care field is acute right now, and the proposed care insurance would only serve to help people years or even decades from now.
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Editor: Aili Vahtla
