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Eesti Gaas turns to justice chancellor over excise duty hike

Eesti Gaas headquarters in Tallinn.
Eesti Gaas headquarters in Tallinn. Source: (Siim Lõvi/ERR)

Estonian natural gas seller Eesti Gaas has turned to the Chancellor of Justice in connection with the company's view that the excise duty hikes adopted last year are unconstitutional.

According to the company, the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act disproportionately restricts the freedom of gas companies and other companies that use gas to conduct business. It also discriminates against natural gas system operators compared to companies that pay the exise duties of other types of heating.

The sharp excise duty hike also goes against the legitimate expectation principle and is at variance with the good practice of legislative drafting, the company said.

The parliament adopted amendments to the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act on Dec. 19 of last year.

Beginning this year, the excise duty for natural gas in Estonia is €3.87 per megawatt-hour, but according to the government's excise hike plans it will increase to €7.56 per megawatt-hour by 2020. The Ministry of Finance estimates that the end price of gas will increase by at least 15 percent as a result.

Editor: Aili Vahtla

Source: BNS

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