Arto Aas, head of the Estonian Employers' Confederation (Tööandjate keskliit) told morning show "Terevisioon": "This feels like a type of medieval torture, where the government is saying that they will amputate one of your limbs one way or another, though they will let you have a say in choosing which one."

As for describing the choice presented between a corporate profit tax and a property tax, Aas said: "The debate hasn't been thought through or held publicly enough. There seems to have been a rush to get this unpleasant issue off the table."

"If the government did want to emerge the winner, it would need to do something else in any case," Aas added, referring to the austerity measures being put in place to reduce the state budget deficit.

Most businesses would be affected by both or either of the proposed taxes, Aas said, with the latter potentially bringing the greater impact. "The hitherto simple and transparent taxation system will in any case take a hit," he added.

"This analysis which has been done in Estonia makes businesses consider the international competition all the time," he went on, referring to Estonia's status as a destination for foreign firms and investment.

"It is no major hardship to move the head office to another country," Aas continued.

Aas also pointed out that culpability should fall on previous governments, which had systematically overspent and had failed to apply the brakes.

The government is forming up the 2025 state budget bill which needs to be sent to the Riigikogu at the end of this month, and as such talked tax and budget issues late into Thursday evening

However no final decision was made, meaning the discussions will continue into next week.

In an interview given to ERR earlier in the week (link in Estonian), Aas had criticized Social Democrats leader and Interior Minister Lauri Läänemets' proffered quid pro quo where SDE would support a corporate / property tax in principle if employers agreed to a 12 percent minimum wage hike.

Employers' are not awaiting tax hikes as such, which makes tacking on a call for a minimum wage raise on top "illogical," Aas said, adding minimum wage negotiations are for his organization together with the main trade union.

Also, the central bank's (Eesti Pank) forecast, due the week after next, is a necessary precursor to the talks.

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