Lithuanian Transport Minister Marius Skuodis says EUR 1.3bn is needed to significantly improve the country’s road infrastructure, BNS reports. The current budget for road maintenance is EUR 872mn, which falls short of the necessary amount to address the deteriorating conditions, Skuodis says. The Ministry of Transport is exploring ways to provide direct funding to the…
The Estonian Reform Party has proposed reducing the tax-free income threshold to boost government budget revenue, Prime Minister Kaja Kallas revealed, ERR reports. However, she said that Reform’s coalition partners, Estonia 200 and the Social Democratic Party (SDE), opposed the idea due to its potential adverse impact on low-income earners. Interior Minister Lauri Läänemets of…
Estonia’s ruling coalition parties have agreed to introduce a new tax to fund national defence, ERR reports. Incoming prime minister Kristen Michal of the Estonian Reform Party stated that the tax would likely combine increases in VAT, income tax, and excise duties. The aim was to distribute the financial burden evenly across different societal groups,…
Representatives from Lithuania’s five largest commercial banks — Citadele, Luminor, OP Corporate Bank, SEB Bank, and Swedbank — met with Prime Minister Ingrida Simonyte to express dissatisfaction with the extension of the windfall tax on bank profits, BNS reports. They voiced concerns over the unpredictability of the investment environment and the lack of cooperation between…
Estonia’s Ministry of Finance plans to issue bonds specifically for Estonian citizens for the first time, allowing small investors to benefit from a fixed interest rate and trade the bonds on the Nasdaq Tallinn stock exchange, ERR reports. Finance Minister Mart Võrklaev says that the aim is to diversify the state’s funding sources and provide…
Latvia’s ruling coalition will soon need to discuss “painful decisions” on taxes, Prime Minister Evika Silina stated, LETA reports. Speaking in an interview with TV3, Silina said that simplifying taxation was an important priority. The Ministry of Finance has developed potential proposals for changes on real estate tax, labour costs, corporate income tax, VAT, small…
The planned synchronisation of the Baltic electricity grids with Western Europe in February 2025 will slightly increase electricity prices for consumers, according to Lithuanian Energy Minister Dainius Kreivys, BNS reports. The impact on prices will be minimal, around a few percent, he said. Lithuanian power grid operator Litgrid estimates that the synchronisation will cost consumers…
Latvia’s Ministry of Economy and Ministry of Welfare have proposed reducing the amount that employers pay for sick leave, LSM reports. Under the proposal, the first day of sick leave would remain unpaid, while days 2-3 would be compensated at 60% of the salary and days 4-8 at 70%. From the 9th day onwards, the…
Electrifying the public transport system in Estonia’s Harjumaa county would require EUR 2bn in grid investments, Tallinn deputy mayor Kristjan Järvan stated, ERR reports. He said that the project would include major upgrades to both the distribution and transmission networks to support the increased use of electric vehicles. Electrifying Tallinn’s bus fleet alone would cost…