Taxpayers association proposes ditching planned tax amendments

Photo is illustrative.
Photo is illustrative. Source: (Ministry of Finance)

The Estonian Taxpayers Association (EML) said that extensive amendments to the Taxation Act are quickly damaging the Estonian economy and legal environment and the association is proposing to abandon tax amendments and instead reduce the increase in tax-free income to €450.

The taxpayers estimate there to be a greater than average risk of important shortcomings and legal gaps, contradictions and differently interpretable provisions arising only as the law is implemented, EML said.

"As it is widely known, the tax amendments currently being handled have been drawn up with the aim of finding additional sources of revenue to compensate for the impact of the €500 tax-free income to enter into force in 2018," said the association. "Thus the EML is proposing to abandon all tax amendment proposals to increase tax burdens that are currently behind handled and instead reduce the increase in tax-free income to €450 per month. Compared to the existing €180 and the previous government's decision to increase it in €10 increments, this increase would have a sufficient impact and would allow for the canceling of a numbber of indirect increases in taxation, which through increased prices would impact the most the subsistence of these low-income individuals whose net income is supposed to increase through an increase in tax-free income."

The association also appealed to all political parties with a proposal to sign an agreement that the campaigns of the next parliamentary elections not include promises of lower taxes and increased benefits. "The reason for problems today is mainly in the circumstance that promises made in election campaigns require such increases in taxes which the parties have not promised prior to the election and which lack the voters' mandate," EML noted.

The Estonian Taxpayers Association is a nonprofit established in 1995 which protects the interests and rights of taxpayers, seeks an optimal tax burden and monitors the effective use of collected taxes.

Editor: Aili Vahtla

Source: BNS

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