- Estonian retailers want a VAT exemption on basic food products.
- The VAT rate will increase from 22 percent to 24 percent in six months.
- Retailers believe a VAT exemption on food products is standard in most European countries.
- The head of supermarket chain Coop, Rainer Rohtler, said that Finland kept food products at 14 percent despite raising its VAT to 25.5 percent.
- Rohtler said lowering VAT on vegetables, meat, and dairy products would cost the state €40 million less in revenue but would support Estonian producers and improve purchasing power for struggling families.
- Minister of Finance Jürgen Ligi believes wealthier consumers and retailers would benefit most from the change.
- Ligi said that retailers’ profit margins have grown and they are seeking concessions from the state.
- Rohtla disagreed, saying that profit margins for retail companies in Estonia are among the lowest.
- Bank of Estonia Economist Kaspar Oja stated that food prices in Estonia have risen faster than the EU average, but this cannot be explained solely by tax changes.
- Minister of Regional Affairs and Agriculture Piret Hartman said the idea should be discussed.
- Hartman said that lowering VAT on food does not necessarily result in a massive loss for the state budget, as people would spend the saved money elsewhere.
Source: bnn-news.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
