According to current plans, both fuel and electricity excise duties were set to rise on May 1, but the government intends to cancel the increase. Prime Minister Kristen Michal said no other tax changes are currently planned.

"There has been discussion about canceling the increases. We are not holding any additional discussions on other matters, and if we do, they would mainly concern agriculture or other Middle East–related impacts affecting our energy market," Michal (Reform) said.

"If taxes fall or planned increases are canceled, I think that would be a very welcome festival, but tomorrow we will nevertheless discuss the Middle East's impact on our energy carriers and how to reduce the transmission of price increases to Estonian consumers," Michal said in response to a question about whether the previously experienced so-called "tax festival" would be avoided this time.

Reform Party Finance Minister Jürgen Ligi told "Aktuaalne kaamera" on Wednesday that he would not comment on the issue before seeing the relevant figures and calculations, adding that there are disagreements within the government on the matter. According to Aivar Sõerd, a member of the Riigikogu finance committee, the state does not have a complete overview on which to base excise duty changes before the spring economic forecast is finalized.

"This is really a question of the credibility and predictability of the state's finances. Stability in the economy, the economic environment and the tax environment is a value in itself. If decisions are made, they should be well considered and based on analytical and numerical material," Sõerd said.

Former finance minister Mart Võrklaev (Reform) said the state budget deficit does not currently allow for any other tax changes, but canceling the excise duty increase is reasonable.

"If there are very exceptional circumstances, as there are now with fuel prices, and we know that the excise increase had previously been planned, then reviewing it or at least considering what the impacts would be one way or the other is reasonable. But I certainly do not think it is right for us to revisit so-called long-term tax decisions every few months or every half-year. In that respect, I would remain critical," Võrklaev said.

Opposition Isamaa vice chair Aivar Kokk said canceling the excise duty increase would not create a large hole in the budget.

"We can clearly see that today this sum — €50 million — is not one that needs debating in the state budget. Transitional funds and unused money from last year are more than €2 billion in surplus, so that money is certainly available in the budget today," Kokk said.

Center Party chairman Mihhail Kõlvart said it is not normal that every minor or major crisis leads to discussions about tax changes. Canceling the excise duty increase is necessary for now, he said, but fuel VAT should also be reduced.

"As a temporary measure, VAT should be cut by at least half. In other words, today we should be talking about fuel VAT being 12 to 13 percent," Mihhail Kõlvart said.

As things stand, from May 1, excise duty on gasoline is set to rise by 5 percent and diesel excise duty by 7 percent. Natural gas excise duty is expected to increase by 18 percent, while electricity excise duty is set to rise by 46 percent.

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