Estonia’s three-party coalition government has reached agreement on tax changes, Prime Minister Kristen Michal announced, ERR reports. He said that the government would raise the corporate profit tax, personal income tax, and VAT to finance increased spending on defence. The government will raise the VAT rate by 2 percentage points as of 1 July 2025…
Latvia’s banking association, Finance Latvia Association (FNA), opposes a proposed windfall tax on local banks, LETA reports. The association argued that the tax was “disproportionate, short-sighted, and nontransparent.” FNA warned that the tax would have negative long-term consequences, hampering Latvia’s growth, competitiveness, and attractiveness for private investment. The tax would oblige the financial sector to…
Estonia’s liberal opposition party, Right-Wingers (Parempoolsed), has re-elected former prosecutor general Lavly Perling as its chairperson, ERR reports. She was the only candidate to the post. Perling labelled the current three-party government a “coalition of three socialists,” criticising the government’s tax policies. However, all current parliamentary parties had made “baseless promises” and taken part in…
Estonia’s Ministry of Finance has proposed raising excise duties on alcohol, tobacco, and fuel by 5% per year over 2025-2028, ERR reports. The tax hikes would take effect as of 1 July 2025. The bill would raise alcohol and tobacco taxes more than initially planned for 2025 and 2026. Estonia’s excise tax on petrol has…
Estonia’s Ministry of Finance has proposed postponing the introduction of a unified tax-free income threshold until 2026, ERR reports. The ministry said that the move would ensure that Estonia’s state budget deficit did not exceed 3% as required under EU law. Under the current system, gross income of EUR 1,200 per month is exempt from…
Lithuanian and German officials have signed an agreement on the rights of German troops, civilian personnel, and their families in Lithuania, BNS reports. The agreement was signed by the Lithuanian and German defence ministers, Laurynas Kasciunas and Boris Pistorius, as well as deputy foreign ministers Jonas Survila and Tobias Lindner, in Berlin. The agreement provides…
Lithuania’s Deputy Minister of Economy and Innovation, Karolis Zemaitis, visited Taiwan on 3-6 September 2024, ELTA reported. During his visit, the minister met with officials at Taiwan’s Ministry of Digital Affairs and Ministry of Economic Affairs as well as with potential investors. He had meetings with representatives of several local banks and major companies in…
The Estonian Reform Party’s general assembly has elected Prime Minister Kristen Michal as the party’s new chairman, replacing former prime minister Kaja Kallas, ERR reports. Michal received 664 out of 818 votes. In his acceptance speech, Michal said that Reform’s mission was “a self-reliant people, the growth of prosperity and a strong middle class, security…
Lithuania should spend at least 3.5% of its GDP on defence each year, President Gitanas Nauseda stated, BNS reports. He said that military spending should be increased “year after year” to implement plans to modernise the Lithuanian Armed Forces (LGP) and host a full German brigade in the country. Meanwhile, Viktorija Cmilyte-Nielsen, speaker of the Lithuanian…