Speaking on ETV’s Terevisioon, Läänemets said that most of the state budget could be agreed upon at the government meeting on 12 September, but one of the main issues remains the nature of the new security tax.
“So far, the Social Democrats have supported the security tax option, which concerns the profit tax in corporate taxation. This was the position of our board. The entrepreneurs themselves proposed an asset tax. They call it a duty. We in the party discussed that if we manage to agree with the Employers’ Union that next year the minimum wage will increase by as much as was agreed with the trade unions, that is, by about 12%, then I do not rule out that the Social Democrats will support this proposal from entrepreneurs,” Läänemets said. “Today (September 12 – editor’s note) we will be able to discuss this. If the Social Democrats change their position a little, and the entrepreneurs support the increase in the minimum wage, then we will be able to make such a decision.”
According to Läänemets, the corporate asset tax will not be something completely new, and it is already in use in some European countries, although he was unable to name these countries.
“There are certainly issues there in that certain sectors will be more affected, such as banks and real estate companies that have a lot of assets. At the same time, in the case of banks, we know that their profits are exceptional,” he added.
Arto Aas, head of the Employers’ Central Association, and Mait Palts, CEO of the Chamber of Commerce and Industry, believe that the introduction of a classic income tax will reduce the motivation of entrepreneurs to show profits in full, which will result in the state not receiving the expected tax revenues. In addition, in their opinion, the introduction of a classic or advance income tax will create a significant administrative burden on the state.
According to the proposal, a company with assets of up to 10,000 euros would have to pay an annual fee of 15 euros. A company with assets of more than 1 billion euros would have to pay 3.8 million euros annually, according to the unions’ calculations.
Related articles
Business associations have pooled their efforts and calculations to propose to the government a plan that would allow companies to avoid income tax.
The idea of the Chamber of Commerce and Industry to replace the corporate income tax with a fee calculated on the basis of the company’s balance sheet volume should be analyzed, said Kristina Kallas, head of the Estonian 200 party.
The government plans to reach an agreement in budget discussions on Thursday. According to Social Democrat leader Lauri Läänemets, the government is considering two tax options for businesses – a profit tax and a property tax.
Perfume is the same element of the image as a bag or shoes. It gives self-confidence, lifts the mood and inspires. But it so happened that many save on perfume and instead of original products buy replicas or goods of unknown brands. And in vain.
Most read
Latest news
Now in focus
Source: www.dv.ee
