Estonia's Riigikogu rejects plan to cut VAT on basic food to 9 percent
With 42 abstentions, the Riigikogu on Thursday blocked a Center Party proposal to lower Estonia's 24 percent general VAT on key food groups.
Center's plan targeted VAT cuts for root and other vegetables as well as dairy, meat, grain and fish products.
A total of 19 opposition MPs from the Center Party, the Social Democratic Party (SDE), Isamaa, the Conservative People's Party of Estonia (EKRE) and some non-affiliated members voted in favor of the VAT cuts.
No MPs voted against the VAT cuts, but 42 abstained — mostly members of the coalition Reform Party and Eesti 200, along with a few from EKRE, Isamaa and non-affiliated MPs.
Earlier this summer, a record 98,580 people signed a popular initiative urging the Riigikogu to cut VAT on food to 10 percent, in line with similar reduced VAT rates on food in other EU member states.
Estonia's standard VAT rate rose from 20 to 22 percent on January 1, 2024, and increased again to 24 percent on July 1 this year.
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Editor: Aili Vahtla
