Food blogger and MasterChef Estonia winner Jana Guzanova called for VAT on food products to be dropped from 24 percent to 10 percent. Her petition, launched on the Citizen Initiative Portal (rahvaalgatus.ee), was signed by over 98,000 people by the deadline on August 11.

Estonia is one of the only countries in the EU that does not have a reduced rate of VAT on food products.

On Tuesday, it was announced that Guzanova had joined the Center Party to run in the local elections this coming October.

She told "Aktuaalne Kaamera" that the citizens' initiative was not part of her plan to launch a political career.

"It was more of a spontaneous decision. I eventually realized that as a private citizen, I cannot push a bill through on my own. I need political backing, and since Center Party supporters were the biggest supporters of this petition, it felt like a logical and organic next step. Honestly, the Riigikogu elections are coming up, and if the current Riigikogu does not take this into legislative proceedings or no bill comes of it, then my ambitions will go further," Guzanova said.

A recent poll showed that 97 percent of Center Party supporters back lowering VAT on food. The party also has strong support in Tallinn.

The second most signed petition to scrap the car tax gathered over 60,000 signatures last year. It was discussed by the Riigikogu but had no impact on the final bill passed by the parliament.

All petitions on the portal signed by over 1,000 people are forwarded to the Riigikogu. Guzanova's will be discussed by the Finance Committee in the near future, said committee chair Annely Akkermann (Reform).

She does not see lowering VAT as a solution to rising prices.

"The real issue behind this petition is inflation, which I believe is currently the biggest problem in the Estonian economy, and maybe it should be discussed in the main chamber. I have nt yet talked this through with my colleagues, but I'm considering it myself," Akkermann said.

Prime Minister Kristen Michal (Reform) is against lowering VAT.

"My personal preference is to go with something that has more direct impact on people—namely, raising the income tax exemption, which would help those with lower and middle incomes, and avoiding any increase in income tax. But it is too early to assess this now, because we don't yet know what the state of revenue intake will be. We'll find out on August 26," he told "Aktuaalne kaamera."

Opposition parties support cutting VAT. A similar bill introduced by the Social Democrats in May, which wants to reduce VAT on staple foods to 9 percent, is already under review by the Finance Committee.

"It's not just a matter of high food prices or people struggling to get by. This is also about the competitiveness of Estonia's food producers and farmers, and it's about the survival of our tourism and food service industries. They're affected by high food prices too," said Lauri Läänemets, SDE chairman.

Andrei Korobeinik (Center), vice chair of the Riigikogu's Finance Committee, said: "I really hope the Reform Party will return to market economy principles and stop telling market participants what and how they should sell—competition sets prices. A lower VAT will certainly benefit consumers. Experience from other European countries shows that this is exactly what happens."

--

Follow ERR News on Facebook and Twitter and never miss an update!