CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.


Close

Password Reminder

Please enter your email address to receive a password reminder.

 

Log into Tax-News+
Not registered yet? Find out about our daily news alert service »

Email Address: 
Password: 

Login »

Forgotten your password?


Today’s Top Headlines




Estonia Adopts Budget For 2013

By Ulrika Lomas, Tax-News.com, Brussels

20 December 2012

Estonia's parliament, the Riigikogu, has adopted a 2013 budget which includes the goal of reducing the tax burden to the country's pre-recession level through cuts in labor-related taxes.

According to the Finance Ministry, the tax burden will decrease by 0.6% to its lowest level in five years, down to 32.6% of the economy. In particular, unemployment insurance premium rates will be reduced to 3%. However, excise on alcohol will rise by 5%, and there will be a 10% rise in tobacco excise affecting cigarettes spread over the next two years.

Ministry figures predict an increase in budget revenue of 2.2% in 2013, whilst expenditure will increase by 1.1% to EUR7.7bn (USD10.bn). This will amount to a deficit of 0.7% of gross domestic product, although the Ministry also explained that there will be a structural budget surplus of 0.1% of GDP in the year ahead. The debt burden for 2013 is calculated at 12% of GDP - the lowest in the European Union.

The Ministry also promises increases in social security spending amounting to a 6% rise on 2012. Pensions will increase by 5%, and there will also be rises in "need-based child support, unemployment allowances and health insurance expenses." Social benefits will represent 28.3% of the total state budget, and all government areas will receive a budget increase of 4.4% for labor-related expenditure.

TAGS: tax | gross domestic product (GDP) | budget | Estonia | excise duty | ministry of finance | social security

To see today's news, click here.

Leave a comment

Read our Posting Guidelines