The state is unwilling to reduce VAT.
Postimees Digest, Tuesday, July 9
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While Estonia's VAT on food products is one of the highest in the EU, the ruling coalition refuses to return to the 18-percent tax, which was raised to 20 percent in 2009 as a temporary measure. Politicians and officials argue that VAT reduction would not lower food prices, since the producers, processors and traders would correspondingly increase their share, while Finance Minister Jürgen Ligi claims that the rich would benefit more from the VAT cut than the poor. The Ministry of Finance estimates that the reduction of VAT to 18 percent would reduce revenues by 140 million euros. The government also explains its refusal with the policy of maintaining uniform tax levels with minimum exceptions.
European Innovation Academy launched in Tallinn.
The three-week European Innovation Academy was launched in the Tallinn University of Technology on July 8. Up to 200 students from 30 countries have to create an innovative business idea, its business model and a product or service prototype within 15 days. The training includes both theoretical knowledge and practical exercises and ends with an international conference, where the prototypes are presented to venture capitalists and investors.