Estonia to cut income tax rate to 20% in 2015
17.06.2011, 10:09The parliament has approved a measure to lower Estonia’s flat income tax rate from its current 21 to 20% starting from 2015.
Opposition says that it will cost the state 70 million euros per year in lost revenue.
Eiki Nestor, an MP representing the opposition Social Democrats, criticized the measure, saying that it was a losing proposition for workers of all income levels.
"In Estonia there are people who have very small incomes. There are those who have no income at all. They don't gain anything from these amendments. I'm afraid that even those who now receive an average salary and also those who earn above the national average income will lose even more. When an emergency situation arises, a couple months later you'll start to understand just how much you're missing these 70 million euros," he said.