The Lithuanian government will consider cutting the excise duty on diesel fuel temporarily amid the sudden surge in global oil prices, BNS reports. Under the Finance Ministry’s proposed legislative amendments, the fixed portion of the excise duty rate for standard diesel and marked agricultural diesel would be reduced until 15 June 2026. The move would…
Estonian capital Tallinn’s city council has approved the city budget for 2026, ERR reports. Total revenues are planned at EUR 1.2bn, including EUR 781.2mn from personal income tax, EUR 188.3mn in state and other grants, EUR 112.4mn from the sale of goods and services, EUR 36.4mn from land tax, and EUR 9.5mn from external funding….
Estonia’s Chancellor of Justice, Ülle Madise, has asked the Supreme Court to declare the country’s new car tax unconstitutional, ERR reports. Madise argued that current legislation was in conflict with the Constitution as it did not allow refunding the motor vehicle registration fee in exceptional cases, such as when the vehicle was stolen, destroyed, or…
Estonia’s GDP will grow by 3.6% in 2026, but economic growth will slow down to 2.5% by 2028, according to the Bank of Estonia’s latest forecast, ERR reports. Growth in 2026 will be driven by increased exports and government stimulus, the central bank said. The general government budget deficit will be the largest in 30…
The Estonian parliament, the Riigikogu, has rejected the opposition Estonian Centre Party’s (Keskerakond) proposal to lower the VAT on basic food products to 9%, ERR reports. No MPs voted against the proposal, but 42 MPs, mostly from the ruling coalition, abstained. Under the proposal, the VAT on specific categories of food, including vegetables and dairy,…
The Estonian parliament, the Riigikogu, has approved the state budget for 2026 with 51 MPs voting for and 37 against, ERR reports. The government estimates annual budget revenue at EUR 18.6bn and expenditure at EUR 19.5bn. Investments will total EUR 1.3bn, which will be 45% more than in 2025. Then government expects tax revenues to…
The Latvian parliament, the Saeima, has approved amendments to introduce a reduced 12% value-added tax rate on selected basic food products in 2026, LETA reports. Under the amendments, the lower VAT rate will apply to various bread products, milk, poultry meat, and eggs. The reduced VAT will apply from 1 July 2026 to 30 June…
The EU should make the implementation of a global minimum corporate income tax voluntary or abolish the tax altogether for small countries like Estonia, Finance Minister Jürgen Ligi insisted, ERR reported. He noted that the EU had made the global minimum tax mandatory for member states through a directive, which he said placed EU businesses…
The Latvian parliament, the Saeima, has approved amendments raising the excise taxes on alcoholic beverages, tobacco products, and sweetened beverages as of 2026, BNS reports. The aim is to reduce the consumption of products that are harmful to the environment and health, LSM reports. The excise duty on strong alcoholic beverages will rise as of…
