An additional budget proposed by the government to combat the economic fallout from the coronavirus pandemic would amount to about €2.5 billion and will include a reduction of excise duties on electricity, diesel and natural gas to find some of this, says MP and Riigikogu finance committee chair Aivar Kokk (Isamaa).
The excise duty on natural gas would fall its 2017 levels, Kokk said, excise duty on electricity would be lowered to the lowest level allowed under EU law – i.e. €1, diesel excise duty would be reduced by 14.3 cents per liter to a level the same as that of Lithuania.
An electricity excise duty cut would translate to an electricity price about three percent cheaper, for the average household consumer, than at present, Kokk said.
Kokk could not give an answer as to whether petrol excise duties would be reduced, referring instead to the need to ensure the receipt of state budget revenues, ERR's online news in Estonian reports.
In total, however, excise duty cuts should cost the state budget €140 million and should not last longer than two years, Kokk said.
The new excise duty rates are scheduled to take effect on 1 May, Kokk said.
Whether any further supplementary budget, in addition to the one currently being prepared by the government, would be forthcoming, was too early to tell, Kokk added.
The government is expected to submit its supplementary budget to the Riigikogu on Thursday.
Editor: Andrew Whyte