Estonia’s incoming ruling coalition has agreed to implement budget cuts across all ministries, including defence and interior affairs, ERR reports. Margus Tsahkna, chairman of Estonia 200, said that each ministry would likely face a percentage-based cut to salaries and management costs, and that no new jobs would be created. The coalition plans to extend the…
Lithuania will begin issuing defence bonds after 1 October 2024, Finance Minister Gintare Skaiste announced, BNS reports. The defence bonds will have a maximum interest rate of 2%, which is lower than on savings certificates. The lower rate will ensure that the state borrows for defence at a rate that is cheaper than the market…
Lithuania’s central bank, the Bank of Lithuania, has proposed a comprehensive review of existing tax exemptions, income and wealth taxation, and reducing the VAT gap to increase budget revenue as the population ages, BNS reports. Vaidotas Tuzikas, principal economist at the Bank of Lithuania, noted that Lithuania’s ratio of tax collection to GDP of 4.5%…
The constitutional and finance committees of the Estonian parliament, the Riigikogu, have decided to amend the car tax bill, ERR reports. Earlier, President Alar Karis rejected the bill, arguing that it violated the principle of equal treatment. Constitutional committee chairman Hendrik Johannes Terras and finance committee chairwoman Annely Akkermann said that discussions with various ministries…
The budget and finance committee of the Lithuanian parliament, the Seimas, has approved a proposal to link state budget funding for the public broadcaster, Lithuanian National Radio and Television (LRT), to GDP growth as of 2026, BNS reports. Under the plan, LRT would continue to receive 1% of government income tax revenue and 1.3% of…
Amid rising incomes and optimism about their financial situation, Lithuanians are spending more on food and non-essentials but are increasingly reluctant to dine out due to high restaurant prices driven by rising labour costs and the expiration of pandemic-era tax breaks, LRT reports. While supermarket food sales are boosting economic growth, restaurant turnover has fallen…
Latvia’s State Revenue Service (VID) is implementing changes to make the institution more customer-friendly towards both residents and businesses, Prime Minister Evika Silina stated, Baltic News Network reports. Speaking after a meeting with VID director general Baiba Smite-Roke, Silina said that VID should become more efficient by reducing tax administration costs. VID plans to develop…
Slowing inflation and strong wage growth in Estonia have increased people’s purchasing power, according to the Bank of Estonia, BNS reports. In June 2024, the consumer price index rose by only 2.5% on year, which was the slowest rate in three years, primarily due to falling energy prices. At the same time, most services have…
Tax-free income in Estonia totalled EUR 4.15bn in 2023, according to the Ministry of Finance, ERR reports. In 2023, the tax-free income threshold was EUR 704 per month for pensioners and EUR 654 for working-age individuals. The ministry does not have a current forecast on the amount of tax-free income in 2024. Former prime minister…