Estonian Prime Minister Kaja Kallas has stated that the widespread criticism of tax increases is understandable, but no better solutions have been proposed, writes ERR News.
Kallas pointed out that the government was anticipating sharp criticism before announcing its decision. The Prime Minister said: “This outrage is completely understandable. When I realized that we had to make such difficult decisions, I didn’t sleep for several nights in a row. And knowing what was coming, I also told my team to put on their helmets and their bulletproof vests, because now the criticism is going to come from all sides and it is not going to be gentle. And so it has been.” She added that she understood the anger, but there were no alternatives. Kallas stated that she is open to new ideas, but no one has suggested them so far.
“The same opposition that criticizes, keeps introducing new bills to increase subsidies and writes in the line where the money comes from that the Ministry of Finance will do the analyses. By today, it should be clear to everyone that
any increase in subsidies still comes out of the taxpayer’s pocket
and you have to say what one thing or another will cost the taxpayer in the end,” noted Kallas.
The new Estonian government has decided to increase personal income tax and VAT by two percent, and it will increase from 20% to 22%. Other taxes are expected to be raised as well and the government hopes that the new taxes that will be applied to cars will bring in 120 million euros per year to the state budget. It is expected that the excise tax on fuel will also be increased. The coalition has indicated that the tax changes are necessary to fight the large budget deficit of 1.7 billion euros, which is 4.3% of GDP.
Kallas also visited Ukraine onthe 24th of April, and after the visit said that the biggest concerns of Ukrainian President Volodymyr Zelensky are currently related to armaments, ammunition and Ukraine’s membership in the European Union and NATO. She pointed out that it is clear that Ukraine cannot join the alliance while the war is going on, because it would involve the allies in direct hostilities as well. The prime minister explained that the only security guarantee that works is NATO membership.Estonia tries to convince the allies that Ukraine must be given a clear perspective that it will be possible after the end of the war.
Kallas added that Ukraine’s success directly depends on the support of its allies.
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