Estonia: Environment tax hikes suggested

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    Estonia: Environment tax hikes suggested

     

    In Estonia, the in-depth analysis of the environment taxes finds that environmental taxes should be raised over 2016-2020. The analysis, led by the Green Party's Valdur Lahtvee, advises to impose a car tax, hike the fuel excise, impose a mandatory excise duty on packaging, among other. The analysis, commissioned by the State Chancellery, should serve as the basis for the Government to outline the tax policy for the next years. The biggest impact is expected from imposing the national Co2 tax on electricity production, rising to EUR 20/tonne by 2020 on condition the price of carbon credits used in the EU emissions trading, remains below EUR 10/tonne. The imposing of the high tax would push the production cost of electricity at Narva power plants to surpass the current cost by EUR 30/MWh. The high price level would make the Narva power plants non-competitive. The analysis likewise advises to tax farmers, imposing a tax in the use of mineral fertilizers and pesticides. The analysis also advises to tax the production of waste fuels, and impose a waste tax on

    households. At present households pay only for waste collection.

     

    Original content in Estonian