The chairmen of the parties that make up the new coalition, Lauri Läänemets (SDE) and Kristen Michal (Reform Party)Photo: Liz Treimann
The VAT will increase by two percentage points from July 2025, as will the personal income tax from January 2026, according to the coalition agreement between the Reform Party, the Social Democratic Party and Eesti 200. It is also planned to increase the excise tax on alcohol, tobacco and petrol, writes ERR.
The agreement also provides that a two percent corporate income tax will be applied from the beginning of 2026.
All these measures are called “security taxes” and will be in effect until the end of 2028.
“The government that takes office after the 2027 Riigikogu elections will decide whether the tax is needed or whether it will be changed,” the coalition agreement says.
Source: www.dv.ee
