Anne Veskimägi. Photo: Karin Jaanus
According to businessman Enn Veskimägi, the government’s stated goal of returning the Estonian economy to growth contradicts the measures they want to use to achieve this, reports rus.err.ee.
“We had a tax increase just a year ago. Now it turns out that every new government, upon coming to power, immediately increases taxes, and in the conditions of an economic downturn, this has the opposite effect,” Veskimägi said.
“I myself believe that the most painless solution would be to lower the tax-free minimum. Now it seems to be 654 euros, and they want to raise it to 700 euros. If it is lowered for one year, for example, to 200 euros, then this would give 800 million euros (additional budget revenues). The second point that I would propose and which is difficult to convince politicians of is freezing indexation. Which would also give a couple of hundred million. And we would get a billion to plug this hole,” he added.
According to Veskimägi, there is no reason to expect an improvement in the economic situation this year.
“Right now, I don’t see any light at the end of the tunnel. This year, nothing will improve for sure. Let’s take the statements of politicians on social networks that we need to go to new markets. Our export markets are the closest ones to us, Finland and Sweden. And if there is no growth there, then we have no opportunities. Because if we look for new markets now, then, firstly, it’s time. Secondly, it’s expenses, and in the current economic situation, no matter what more distant market we go to, it’s much more expensive, because our transport prices simply don’t allow us to export to more distant markets,” he said.
Source: www.dv.ee
