Estonian Centre Party seeks lower turnover tax for restaurants, EKRE proposes cutting fuel excise duty
Two bills were submitted to Estonia's parliament — the Centre Party wants to lower the turnover tax on catering services to 13%, while EKRE proposes reducing excise duty on fuel and other energy sources.
Two legislative proposals were submitted to Estonia's parliament, the Riigikogu, on Wednesday — one from the Centre Party and one from EKRE.
Presenting his party's initiative, Centre Party faction leader Lauri Laats said rising prices and increased consumption taxes have hit residents' purchasing power hard, leading people to cut back on spending, including visits to restaurants and cafes. He said this has put heavy pressure on the entire catering sector, with more than 25 food service businesses closing across Estonia over the past year.
Laats noted that business closures also mean job losses and reduced tax revenue, while affecting tourism and the local economy. The Centre Party's bill would lower the turnover tax rate on catering services to 13%, though the reduced rate would not apply to alcoholic beverages. According to Laats, 21 of the European Union's 27 member states tax catering services at 13% or lower. He stressed the importance of the measure for regional policy, saying a village inn, roadside cafe or small-town canteen is not just a business but also a source of jobs and a part of local life.
EKRE proposes cutting fuel excise duty
On the same day, EKRE leader Martin Helme submitted a bill to parliament proposing to cut excise duties on petrol, diesel, gas and heating fuel to the minimum level allowed under EU rules. EKRE also proposes extending the reduced 9% turnover tax rate to excise-taxed fuel.
Helme said he has submitted similar proposals several times before, but noted the situation has now changed: previously Estonia had a majority government that rejected such measures, but that is no longer the case, so the outcome of a vote could be different this time. He compared current energy prices to the period when EKRE was part of the government, saying diesel fuel cost 99 cents per liter then, electricity cost three cents per kilowatt-hour, and gas was four times cheaper than it is now. According to Helme, this was linked to what he described as the sensible tax policy of the government at the time, which benefited ordinary people.
