Postimees Digest, Friday, June 21

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Photo: Toomas Huik

Chamber proposes part of income tax be given to municipalities where people work.

The Estonian Chamber of Commerce and Industry has proposed that a part of individual income tax paid by a person should be given to the municipality where that person lives and another to the municipality where he or she works. Director general of the chamber Mait Palts said that the switch cannot be abrupt and that it is not something to be rushed but that tax receipt could be split between local governments in the long term. Minister of Regional Affairs Siim Kiisler said that 73 percent of people do not live in the same municipality where they work but added that in his mind the best solution would be to merge local governments in a way that would leave people living and working in one big local government.

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