- VAT on goods and services increased from 22 percent to 24 percent
- Shoppers feel the impact in grocery stores with rising prices and declining sales
- Excise duty on gasoline increased by 5 percent
- Food prices most affected due to weak sector performance
- VAT hike expected to accelerate inflation
- Average store prices expected to rise by 1.6 percent, with potential for higher increases
- LHV Bank forecasts annual inflation of 6 percent
- Bank of Estonia concerned about rapid price rise, expecting 5.4 percent inflation this year
- Main drivers of price increases are food costs and tax hikes
- VAT increase part of a national defense tax package by the coalition government
- Expected to generate nearly €2.5 billion in additional tax revenue by 2028
- Ministry of Finance forecasts significant revenue from VAT hike in coming years
Source: news.err.ee
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
