"The bank tax is very reasonable. This has been SDE's position all along. The bank tax is reasonable in a context where interest rates are high. If interest rates fall now, the logic of the bank tax may change a little," SDE Chairman Lauri Läänemets told ERR.

"If we are talking about taxes, then perhaps the most sensible thing to do would be to have either a profit tax, a property tax \...\ and perhaps a separate additional tax on those branches of business that have had exceptional revenues. It is not only the banks that have had exceptional revenues, but we also see that for telecoms companies," the minister of interior said.

"We would be happy to talk about it, but we understand that if this is an issue that the partners did not want to open up in the coalition negotiations, there is no willingness to do so now," he added.

But prime minister and Reform Party Chairman Kristen Michal said banks are already bearing the tax burden, including in the form of advanced income tax.

Of course, there are different views, it's no secret that the Reform Party would like to see the tax system in such a way that entrepreneurs contribute through jobs, through different activities that create value here, and the Social Democrats' view is that entrepreneurs should also bear a higher share of the tax," he said.

"Separately, no other form of tax apart from a broad security tax has been agreed by this government. After the government has had its debates, I hope that we will be able to send to Parliament a comprehensive vision of a broad security tax, a budget and cuts. And after that, we will have a fiscal space on our side, whoever wants to come up with an additional tax plan, enthusiastically or less enthusiastically, can go to the 2027 general election to ask for a mandate for it."

Kristina Kallas, Eesti 200 chairman, said banks already make very large contributions.

"Whether it is taxation of profits or taxation of equity, the banks' contribution in both cases is very high. So there is no separate discussion on the taxation of banks," the education minister said.

"However, since we must show solidarity in covering this security cost, both for individuals and for companies and other organizations, I disagree with the idea of singling out the banks, as if this security cost should be borne exclusively by the banks as a percentage. And that is why a common tax base is still being discussed."

Asked about the wider context of public finances, Kallas said the focus is on cuts not new taxes. She stressed the defense tax would only be temporary and used to cover investments in "ammunition and comprehensive security."

"Other costs, fixed costs, we still have to deal with through reforms. It cannot be the case that we continue to have an ever-increasing trend in fixed costs, and then all the time we are imposing an extraordinary tax on the banks one day and on someone else the next. We are hitting sectors, because we do not really have control over our country's fixed costs," Kallas said.

Opposition parties Center and EKRE have repeatedly called for new taxes on banks.

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