Estonia: No plan to cut basic income tax exemption: incoming PM

Estonia’s incoming prime minister, Kristen Michal, said that the Estonian Reform Party would not propose reducing or repealing the tax-free income threshold during upcoming talks on forming a new coalition, ERR reports. Earlier, outgoing prime minister Kaja Kallas said that Reform had suggested lowering the basic income tax exemption, but that the party’s coalition partners had rejected the idea. However, the current gradual tax exemption will be replaced by a fixed exemption of EUR 700 per month for everyone as of 2025.