Employers' manifesto: Tax hikes must be stopped

In its newly released manifesto, the Estonian Employers' Confederation (ETK) emphasised the importance of a simple tax system and added that tax increases must be stopped.

Recent years' constant tax amendments have caused confusion and mistrust toward the state among all taxpayers, the manifesto stated. This has destroyed morale and had a negative impact on all of the state's tax receipts. Experimenting with taxes must be stopped.

At that, the ETK found that significant tax amendments have been carried out too lightly. These kinds of developments in the tax system have caused a lot of uncertainty. Uncertainty in the tax environment in turn decreases its attractiveness in the eyes of investors, which in turn delivers a blow to economic development and welfare growth.

"We suggest that the next government take time to calmly think through whether the Estonian tax system needs more fundamental amendments, considering the decrease in our working-age population, the need to support innovation, and international competitiveness," the employers said. "The improved involvement of interest groups and analysis-based legislation also increases trust."

The ETK found that a uniform income tax exemption should be restored and excise duty rates be lowered to such a level that excise duty goods are once again bought from Estonia and not from neighbouring countries. In addition, the employers believe that the social tax minimum should be lowered so that part-time employees could find work more easily and a social tax ceiling should be implemented with the objective of making Estonia more attractive for top talents.

At that, the employers said that the payment of social tax should be divided between the employee and the employer so that the net salary of the employee is not reduced and a social tax deduction for the salary of apprentices should be implemented to motivate cooperation between employers and educational institutions.

At the same time, the manifesto also referred to the fact that the state must prepare for worse times for the state budget. "If they do not prepare for worse times in advance, it may bring along sudden tax hikes, the underfunding of public services or the inability to sustainably provide those services,"the manifesto warned.

The employers proposed that the state establish a strategy for the decrease in EU funding and prepare for a possible recession, including increasing reserves at the peak of economic growth, develop financial discipline for worse times and carry out the state's largest infrastructure investments when the state of the economy worsens.

In addition, theETK suggested that a state budget be compiled from a zero base every ten years, that is no taking into account expenses made in the past. Employers are suggesting that the first such budget be drawn up within the next four years, but not later than at the time of the recession.

Editor: Aili Vahtla

Source: BNS

err.ee
TAXES ESTONIAN_EMPLOYERS_CONFEDERATION
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
I recommend
No recommendations yet

Comments

Post your comment to communicate and discuss this article.

Politics
Chairman of the Estonian Chamber of Commerce and Industry and one of the owners of construction group Nordecon, Toomas Luman, finds that a prime ministerial candidate should first and foremost be able to answer the question of what will become of the demographic crisis in Estonia. The businessman sees controlled introduction of foreign labor as the solution. A digital construction cluster was created in Estonia a few years back to bring innovation to the s...
Society
Last year saw 27,125 registered offenses, up 0.5 percent from the year before. Violent crime was up by 12 percent to 8,249 offenses. PHOTO: Dominic Lipinski / PA Wire / Press Association Images / Scanpix Growth was biggest for domestic violence – the police launched criminal proceedings in 3,607 cases that constitutes an increase of more than one-third – annual growth of 37 percent from 2,632 cases in 2017. At the same time, reports of domestic violence we...
Society
TALLINN - Ahead of the withdrawal of the United Kingdom from the European Union, tens of thousands of British citizens have chosen the citizenship of some other country, but only one Brit has recently chosen an Estonian citizenship. Spokespeople for the Ministry of the Interior told BNS that only one British citizen submitted an application for Estonian citizenship last year and the applicant was also granted the citizenship. Before that, no Brits had soug...
Society
TALLINN - Experts from Finland, Denmark, Norway and the Netherlands highlighted the importance of decentralization and granting local governments greater decision-making powers at a conference titled "Strong local government -- strong state?" in Tallinn on Wednesday.  All Nordic countries have chosen a model granting local governments significant decision-making powers, thus the central government does not prescribe how local governments are to fulfill the...
Society
The language learning application Drops by game developer Planb Labs, established in Estonia by Hungarian founders, was named Google Play's best app of 2018. With the number of downloads surpassing 10 million, Drops was named Google's app of the year as the revenue of Planb Labs, a company registered in Estonia, increased fivefold, CNBC said. The developer's revenue grew from €335,000 in 2017 to €1.7 million in 2018. The company's shareholders include Hung...
Society
TALLINN - The Estonian Health Board has banned the distribution of chlorine dioxide, also marketed as the Miracle Mineral Supplement (MMS), the A-component of an unused product, meaning the sodium chlorite solution, must be taken to a hazardous waste collection facility. Ester Opik, head of the Health Board's North regional department, said that the banning of the distribution of the product was caused by the fact that MMS, distributed as a cosmetics produ...
Society
Nature cannot abide a vacancy, as the saying goes. If just one year ago, Estonia was battling the sale of MMS and the practice of giving it to children, a new “miracle cure” called Advanced TRS has appeared on the market now. Even though the make-up of the substance is different, the promise to cure autism and cleanse the body of heavy metals, which kind of extreme detox is accompanied by severe side-effects, sounds all too familiar. TRS is recommended to...
Society
Allied NATO battalions will soon mark two years serving in the Baltics. They have worked better than expected but would need prepositioned heavy weaponry and a functional contingency plan in case of a crisis, a report by the International Center for Defense and Security (ICDS) finds. “We do not know how Russia would have acted had we not welcomed allies in Estonia, Latvia, Lithuania and Poland in 2017. I’m afraid they would have tested our resolve,” one of...
Society
The time of filing income tax returns is nearly upon us. The new income tax system, in effect since last year, will obligate many women who went on maternity leave toward the end of the year to make additional income tax payments, while those who give birth in the middle or at the beginning of the year have no such obligation. What this means is that some women will owe the state simply for giving birth “at the wrong time”. Laura Roop, who went on maternit...