PM: Higher VAT doesn’t reduce consumption remarkably
25.06.2009, 16:06 Andrus Ansip, the PM, defended higher VAT
at the government’s press conference today and expressed his opinion that higher
VAT doesn’t decrease consumption remarkably, E24.ee reports.
“I don’t share the opinion of those people, who say that higher VAT in Latvia
and Lithuania reduced turnover in these countries remarkably. That is not true
and one shouldn’t think of that of Estonia,” Ansip said.
Ansip said that sharply increased excise duties on goods must be thought of
in Latvia’s and Lithuania’s case.
“It was mainly the excise duties and generally lower demand, which came from
uncertainty,” Ansip said on why the states haven’t earned expected money from
the higher excise duty.
Last week Estonian coalition increased several excise duties, including
excide duty on fuel by 10 pct.
Estonia hopes to get EEK 800 mln
from the higher excise duty.