Kristina Kallas, leader of Estonia’s Eesti 200 party, opposes the Social Democrats’ proposal to lower VAT on essential foods to 9%, citing a depleted state budget. She argues that:
- The state lacks funds for such a measure.
- Past fiscal management prevents economic stimulus through tax cuts during downturns.
- The reduction may not lower consumer prices long-term, as retailers could adjust them.
- Finance minister Jürgen Ligi agrees, stating that retailers and wealthy consumers would be the biggest beneficiaries.
Source: news.err.ee
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.
