"If there is a question regarding whether the current ruling coalition will change the VAT policy, then no, there is no such option in the current coalition," Ratas said at the government press conference on Thursday, commenting on the idea to increase the VAT proposed by prospective Minister of Finance Toomas Tõniste.

Minister of Finance Sven Sester, who is soon to leave the position, said that different tax amendments like the classic progressive income tax, the restoring of the business income tax and increasing VAT were discussed by the government during coalition agreement negotiations as well.

"The parties did not reach an agreement regarding any of the three taxes," Sester said. "The parties blocked out different taxes here."

Following Helir-Valdor Seeder's election as chairman of the Pro Patria and Res Publica Union (IRL), the coalition began rethinking its tax package. According to IRL candidate for Minister of Finance Toomas Tõniste, instead of raising multiple other taxes, he would just increase the VAT.