Estonians leaving second pension pillar increase October tax revenue

Amid reduced consumption over high inflation and surge in energy prices, Estonia has registered a surge in tax revenue in October, which has been by 55.7% higher than in October 2020, Estonian public broadcaster ERR reports.
The Estonian Tax and Customs Board registered October tax revenue at EUR 1.088 billion or up 55.7%, compared to last October. This autumn, however, tax revenue was up 40.1% from September.
In 2021, during the first ten months 96% of the state budget’s income target, up 5.7% on year. Higher tax revenue in the state coffers came chiefly in the form of income tax from people leaving the second pension pillar.
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In October, the income tax receipt from natural persons increased by 164.1% in October on year after extra revenue of EUR 283 million. This revenue was not counted on in the 2021 state budget as the Supreme Court had not ruled on the constitutionality of the reform yet. That is why natural persons income tax receipt exceeded forecasts by 205 percent, ERR reports.