Estonian finance minister Jürgen Ligi said in an interview to Eesti Päevaleht that instead of increasing the tax burden on qualified labour and capital, which some European politicians aspire to do, tax free minimum should be increased in Estonia, of which poor people would benefit at once.
Ligi said, commenting upon the tax debates in Europe now, that income free minimum has to start increasing and will start increasing again for us. This would support people with lower incomes directly and would be the content of one the most expensive upcoming tax changes in Estonia.
Currently the income tax free minimum is 144 euros a month.
Ligi stated though that tax concessions are too expensive, too undirected and poor people don’t benefit from them. The tax burden in labour is already too high and we have to work on social tax and associate it with the topic of disability to work, he said.