Urgently wanted: tax unity in wobbly coalition

Tuuli Koch
, reporter
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Photo: Liis Treimann

Today – or in a week, latest – the government will need to take tough decisions if desiring to stick to its intention: before Midsummer Day dawns, tax topics get victoriously voted at Riigikogu.

Time is getting short. The hesitation coalition, now in office for a month, has assumed the goal of reaching final agreement regarding tax issues six months before the «bad» laws enter into force on January 1st 2016, and send them in for parliamentary voting.

Officially, the final working day for Riigikogu is June 11th. In high likelihood, extraordinary sessions are in store. While the current debates seem to convey heated emotions within the new coalition, in reality this is just them trying to get the budget fixed now – and not in the fall as usual.

Yesterday saw preliminary budget talks get pretty heated. Tonight, the cabinet continues. Enterprise minister Urve Palo (Soc Dems) and Prime Minister Taavi Rõivas (Reform) engaged in a brief war of words over VAT rise for accommodation establishments.

«Reform is trying to save face, Ms Palo is going solo a bit, finance minister Sven Sester (IRL – edit) actually has the [financial] cover in place for VAT 2+2+2 yearly plan,» we are told from behind the table.

In addition to fuel excise rise and the accommodation VAT lift, the soc dem culture minister Indrek Saar has also tabled raise-the-culture-workers-wages issue. «Ironing the dog’s tail...» observe coalition partners. As for IRL’s ministers, health of the coalition is assessed as follows: «While in all parties there are problems, at governmental table all have manners.»

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