Attorney: Tax hikes cluster takes the cake as worst legislation of 2024

Legal experts have selected the best and worst examples from the laws passed in 2024. Sworn attorney Allar Jõks announced on the "Terevisioon" morning show that the worst example of lawmaking last year was the tax package, while the title of the best law went to the Waste Act.
According to the panel evaluating legislation, last year's best law was the Waste Act, which made it easier for owners of old cars to dispose of them. Allar Jõks pointed out that previously, junk car owners had to jump through bureaucratic hoops, but with the introduction of the car tax, the state has now streamlined the process of scrapping vehicles.
When discussing the worst law, the panel highlighted the introduction of new taxes last year.
"The goal of taxation — to fund the state budget — is entirely justified, but the way it was implemented and how tax issues were deliberately avoided before the elections is not in line with good legislative practice. The tax changes have created a significant administrative burden both for the Tax and Customs Board and for individuals. The tax package was awarded the title of worst law because of how it was introduced, not because of why it was introduced," Jõks noted.
What became known in Estonia as the "tax festival" saw VAT and income tax increased by 2 percentage points, as well as the introduction of a 2 percent corporate profits tax.
There were several contenders for the title of worst law. Jõks, for example, pointed to amendments to the Accounting Act, which require businesses to review hundreds of pages of guidelines on various sustainability reports in order to produce even more detailed reports — intended for an unknown audience and with unclear benefits. More than 20 proposals were submitted for the worst law category.
Jõks remarked that bureaucracy in Estonia is spreading like cancer. "We keep adding more and more restrictions. This characterizes last year's legislative process."
He attributed the increase in bureaucracy and excessive regulation to a lack of trust from the state. "If we don't impose a sugar tax, maybe we'll eat ourselves into obesity. Another factor is busywork — officials need to show they are doing something. First, they create a problem and then they heroically try to solve it by burning taxpayer money."
Another reason, according to Jõks, is the belief that stricter rules, commands and mandates work better than persuasion.
This year, Jõks said, legal experts will launch a bureaucracy radar, which will track and highlight government decisions that increase bureaucratic burdens.
The jury selecting the best and worst laws included Priidu Pärna from the Estonian Lawyers' Association, Igor Rõtov from business daily Äripäev, Guido Viik from the Service Industry Association and Jõks himself, who is a sworn attorney and a board member of the Service Industry Association.
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Editor: Mirjam Mäekivi, Marcus Turovski