{"id":11258,"date":"2025-10-27T11:56:55","date_gmt":"2025-10-27T11:56:55","guid":{"rendered":"https:\/\/sbceurasia.com\/en\/?p=11258"},"modified":"2025-10-27T11:56:59","modified_gmt":"2025-10-27T11:56:59","slug":"estonias-ministry-of-finance-opposes-bill-to-lower-taxes","status":"publish","type":"post","link":"https:\/\/sbceurasia.com\/en\/2025\/10\/27\/estonias-ministry-of-finance-opposes-bill-to-lower-taxes\/","title":{"rendered":"Estonia\u2019s Ministry of Finance Opposes Bill to Lower Taxes"},"content":{"rendered":"\n

In Estonia, opposition is mounting at the Riigikogu<\/strong> against the budget proposals to lower taxes on gambling income by 2028, an economic mandate supported by the liberal coalition of the Reform Party<\/strong> and Eesti 200<\/strong>. <\/p>\n\n\n\n

Earlier in June, the Reform Party and partner Eesti 200 announced they will be reviewing the country\u2019s gambling framework as part of a wider strategy to revitalise foreign investment in sports, IT and technology sectors.\u00a0<\/p>\n\n\n\n

The plan is to reduce the annual tax rate on gambling income by 0.5% until 2028, which would bring the cap from the current 6% down to 4%. The proposal carries strategic significance as the tax rate would be Malta\u2019s 5% \u2013 a move that coalition ministers support as a long-term initiative to relocate investment in igaming ventures to Estonia.<\/p>\n\n\n\n

The mandate carries the \u2018cautious support\u2019 of Prime Minister Kristen Michal<\/strong>, who approved the economic plan for igaming taxes with a view to helping fund a new Olympics programme for Estonian athletes and the building of a national stadium in Tallinn.<\/p>\n\n\n\n

However, as deliberations have commenced, scepticism about the intended consequences remains not only among opposition leaders, but also within the Finance Ministry.<\/p>\n\n\n\n

Highlighting what needs to happen in order for the reduction to bear fruit, Evelyn Liivam\u00e4gi<\/strong>, Deputy Secretary General of Estonia\u2019s Ministry of Finance, said: \u201cIn our assessment, tax revenues are more likely to decline. <\/p>\n\n\n\n

\u201cTo collect as much as currently forecast in the state budget strategy, at least 10 new operators would need to enter the market each year and pay as much tax as the average gambling organiser has been doing so far.\u201d<\/p>\n\n\n\n

In an initial review of potential gambling tax reductions, the Ministry of Finance stated that approval could only be granted following a more thorough assessment of the associated economic risks and anti-money laundering exposures.<\/p>\n\n\n\n

Tensions were also fueled by the fact that the bill to lower taxes passed first reading in Parliament earlier this week, blocking a planned increase to 7% next year.<\/p>\n\n\n\n

Both Eesti 200 and Reform have stood behind their plans; however, with MP Tanel Tein<\/strong>\/Eesti 200 doubling down in a recent comment: \u201cIf we hike the tax further, remote gambling operators may leave the Estonian market, which means our current state budget forecast could decrease. <\/p>\n\n\n\n

\u201cMany things might go undone, and within two years, we\u2019d just return to the same level where Estonia has always been \u2014 around five percent. We\u2019re moving toward four percent as a signal to the sector that Estonia is once again worth considering\u201d.<\/p>\n\n\n\n

Opposition ministers have urged the Prime Minister to review the terms of the Reform\u2013Eesti 200 economic pact (2023\u20132028). The liberal coalition\u2019s ambitious programme aims to position Estonia as a regional leader in cybersecurity and defence, while pursuing its overarching goal of becoming the first net-neutral nation in the Baltics.<\/p>\n\n\n\n

Don’t forget to subscribe to our Telegram channel!<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In Estonia, opposition is mounting at the Riigikogu against the budget proposals to lower taxes on gambling income by 2028, an economic mandate supported by the liberal coalition of the Reform Party and Eesti 200.  Earlier in June, the Reform Party and partner Eesti 200 announced they will be reviewing the country\u2019s gambling framework as […]<\/p>\n","protected":false},"author":7,"featured_media":11259,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[5,1,24,564],"tags":[1967,12959,754,46,2365,2937,3605,6447,116,6453,5109,10325],"class_list":["post-11258","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gambling","category-news","category-regulations","category-slider","tag-economy","tag-eesti-200","tag-estonia","tag-gambling","tag-investments","tag-ministry-of-finance","tag-online-gaming","tag-reform-party","tag-regulation","tag-riigikogu","tag-state-budget","tag-tax-reform"],"yoast_head":"\nEstonia\u2019s Ministry of Finance Opposes Bill to Lower Taxes - 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