More than 72,000 people have signed the petition to lower VAT rate on food from 24 percent to 10 percent. Estonia is one of the only countries in the EU without a reduction scheme in place.

Jana Guzanova, who spearheaded the initiative, said the level of support reflects the severity of people's financial situation.

"Prices have become absurd, and the weekly cost of groceries has increased so much that people have no money left for anything else. I think it's squeezing people so hard that they feel the need to speak out," she told Wednesday's "Aktuaalne kaamera."

Guzanova said it would be deeply wrong if politicians failed to listen to the people and seek solutions.

Minister of Regional Affairs and Agriculture Hendrik Johannes Terras (Eesti 200) is cautious about lowering the VAT on food.

"I've also spoken with my colleagues in other European Union countries where similar measures have or have not been implemented, including those in Latvia and Lithuania. They've also said that the effect can be short-lived. Lithuania decided not to go ahead with such a change, as they saw the margin disappear into the retail chain and ultimately not reach the end consumer," Terras said.

Both countries have a reduced rate of VAT between 5-12 percent, far lower than the 21 percent VAT rate, data from Eurostat shows.

Terras' predecessor, Social Democrat Piret Hartman, had planned to commission an analysis of the potential effects of lowering the VAT on food.

In April, Terras had said that the analysis would be completed by the end of the year, but that plan has since been scrapped.

"The most important reason is that in Estonia, tax policy falls under the Ministry of Finance, where the competence and long-term knowledge for shaping tax policy resides. It makes sense for the Ministry of Finance to conduct that analysis," Terras said.

According to Minister of Finance Jürgen Ligi (Reform), analyses on the subject have already been done long ago.

"First of all, the main finding is that it does not actually affect the final price, but gets absorbed into the supply chain — essentially into supply chain costs and profits," Ligi said.

Urmas Reinsalu, chair of the opposition party Isamaa, supports reducing VAT on food and sees the only solution as voting out the Reform Party in local elections. He does not believe the Reform Party will change its political behavior, but says they should reverse the entire recent VAT hike.

"I think the government — just like they're now, albeit clumsily, trying to fix the car tax — should also honestly admit that this was a mistake. It has already caused and will continue to cause additional price increases. They should actually correct it and roll it back. Government spending needs to be reduced — which, on the contrary, is set to rise by nearly half a billion euros this year," Reinsalu said.

Isamaa plans to support the petition when it reaches the Riigikogu.

"In such an unnatural situation, this citizens' initiative is definitely something we view favorably. We will certainly express parliamentary support for all steps that reduce the tax burden," Reinsalu said.

Ligi said it is wrong to assume that revenue from price increases belongs to civil servants.

"We are already saving. Everywhere. All sectors are saving. Security is the only one getting a significant boost right now. So that's just empty talk. They don't have a single serious idea on the spending side. The real money is in pensions. Let them say that pensions should be cut. I'm saying that assuming this money somehow ends up with civil servants is simply a lie," Ligi added.

According to Ligi, a reasonable alternative to lowering the VAT on food is the restoration of the tax-free minimum, set to take effect next year, which is not tied to anyone's business interests.

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