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Estonia, Latvia, and starting from this year Poland (partly) are taxing profits earned by companies only at the dividend payout time. Such a model promises to raise both domestic and foreign investment, and it can help the economy recover from the crisis more quickly. The opponents of this taxation system in Lithuania argue that various benefits, which alleviate the burden on business and encourage investment where it is most needed, are already in place.

Keit Pentus-Rosimannus. Source: Siim Lõvi /ERR

“The income tax rate could be reduced to 13-15%, sending all income tax to local governments and reducing labor taxes” suggested the Minister of Finance Keit Pentus-Rosimannus (Reform) on Monday. Writing on social media, the minister said this move would help local governments to finance maintenance and care costs. She also wrote that Estonian labor taxes are too high while health care and social care costs need to be better funded in an aging society.

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The Ministry of Economic Affairs and Communications for Estonia, wants to analyze the existing use of e-receipts and to propose a new service to be introduced by 2025. “Although e-receipt has been available as a service in Estonia for a long time, it is still used relatively little. Larger stores offer the possibility of a digital receipt already now, but more often it’s still paperwork that we can see today. (…)” said Andres Sutt, the Estonian minister.