Estonia Urged to Reduce VAT on Food to Potentially Lower Consumer Prices

• Toomas Luman, head of the Estonian Chamber of Commerce and Industry, urges the government to reduce VAT on food.
• A petition with 100,000 signatures supports the VAT reduction for food.
• Luman is uncertain if VAT reduction will lower consumer prices but suggests a trial reduction of 5 percentage points for one to two years.
• The goal is to gather data on whether food prices decrease in line with the tax reduction.
• Luman highlights that Estonians save little and any extra funds would circulate in the economy.
• He criticizes the government’s lack of spending restructuring and potential for finding funds.
• Luman warns that raising wages is ineffective if prices rise faster, affecting consumer affordability and business profits.
• If consumers cannot handle price increases, businesses may face profit loss and potential layoffs.

Source: bnn-news.com

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.

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