Michal: Incoming government has no plan to lower basic exemption
Candidate for prime minister Kristen Michal told ERR that the Reform Party will not be proposing slashing or abolishing Estonia's basic exemption at the soon-to-begin coalition talks.
"The Reform Party delegation has not made such a proposal. Consultations will start next week, which is when we'll discuss fiscal matters," Michal told ERR Friday.
Incumbent, Prime Minister Kaja Kallas said during the Thursday government press conference that the Reform Party has proposed lowering the basic exemption to increase public revenue, while the idea did not meet with approval from coalition partners.
"We've debated this matter in the past. Yes, our party has proposed lowering the basic tax-free amount, but it has been rejected, mainly because it would hit less fortunate people harder," Kallas said.
With the looming abolition of Estonia's gradual basic exemption reduction scheme, the basic income tax exemption will stand at €700 per month for everyone starting in 2025.
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Editor: Lennart Joosep Lumi, Marcus Turovski
