In Estonia, the proposal to cut petrol excise tax rate to EU’s lowest level has reached second reading as it could result in lower prices by 25%, ERR reports.
In the northernmost Baltic country, the current excise duty rate for unleaded gasoline is EUR 563 per 1,000 litres. The proposal would reduce it to the minimum permitted level in EU at EUR 359. The proposal initially came from the opposition, national-conservative Isamaa party, which is involved in the talks of potentially becoming a part of the next ruling coalition.
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«This would not be a temporary but a permanent measure. No one can say today how long this economic situation will last. We know already that fuel, especially diesel, is in short supply. Notable price advance is forecast for September. Estonia needs to do something to help its people and enterprise,» the Riigikogu Finance Committee chair Aivar Kokk (Isamaa) commented.
According to him, the proposal’s effect on the budget would be about EUR 45 million, while recovering fuel sales could compensate the drop in excise tax revenue, ERR reports.
Estonia discussing fuel tax cuts
