Data released by the finance ministry and tax authority reveal 2020, despite being a pandemic year, did not see as severe an economic decline by the end of the year as had been forecast when the coronavirus first arrived in spring, at least as far as tax receipts go. Labor tax and also fuel excise duties – despite a cut in diesel duties – were the major drivers, and the overall tax take fell less than 3 percent between 2019 and 2020.
Estonian alcohol industry lobby groups have welcomed a proposed tax peace put on the table in ongoing coalition discussions between the Reform and Center parties as a way to normalize a sector hit by the coronavirus crisis.
The Estonian Association of Alcohol Producers and Importers (ATML) and the Estonian Breweries Association (Õlleliit) say the proposal, effectively a meeting of minds between Center s more progressive-taxation-based approach and Reform s long-held flat-rate dogma will also gradually reduce pressure for additional support measures for businesses.
The associations said that the crisis has delivered a painful blow to various sectors in the economy, hitting foremost the incomes of operators and employees of hotels, restaurants and cafes, and any other businesses connected with tourism.
The coronavirus pandemic and its accompanying economic crisis has brought new life to some small businesses in the southeastern Estonian town of Võru, and even led to the creation of new ones, primarily cafes and stores, often set up by people who lost their previous livelihood as the pandemic spread, ETV news show Aktuaalne kaamera (AK) reported Saturday evening.
Manager of the Karamelli kohvik Kristina Noorsalu told AK that the crisis brought favorable opportunities to start and expand her business.
She said: In fact, our dream had been for a very long time to create a lovely place in the city of Võru. As soon as we stepped in here, we saw it, and thought oh, this is the place and did it. We thought that if carry it out it with our heart and soul, people will find their way to us.