Raising environmental fees at this time must be canceled because it has a particularly severe effect on the competitiveness of companies in rural areas and increases unemployment, and therefore the Center Party faction proposes to reject the draft in the first reading, says Jaak Aab, deputy chairman of the Riigikogu finance committee.
“Increasing environmental fees leads to an additional tax burden on companies, which must be paid by the end consumer,” says Jaak Aab. “The Government of the Republic has exceeded all limits with tax increases. The increase in sales tax, fuel excise and state fees, as well as the additional car tax in 2025, serve only one purpose – to implement the Reform Party’s main election promise, which is an income tax reform that favors the wealthy. Entrepreneurs who tighten their belts every day have not earned it.”
According to Jaak Aabi, the government does not have a rescue plan in the face of the economic crisis, and increasing the tax burden only increases uncertainty and the number of bankruptcies. “I agree with the chairman of the Tallink board, Paavo Nõges, who believes that taxing the poorer people will not lead to new economic growth, and that the government should focus primarily on creating investment opportunities. Raising environmental fees is one of the many burdens with which the Reform Party compensates for its failed budget policy,” criticizes the vice-chairman of the Center Party.
Jaak Aab adds that the established logging fee will significantly worsen the situation of forest owners, production and industrial companies, and agricultural companies. “Several companies in the wood sector have already gone bankrupt this year, and the proposed changes will make their situation even more difficult. The production of our companies is no longer competitive due to the high price,” he notes. “The bill’s explanatory letter allows the additional money from the deforestation fee to be channeled into forest restoration, but we don’t see it in the state budget.”
According to the draft, the pollution fee rates in the field of waste, water and ambient air will increase from July 1, 2024. “The oil shale industry’s pollution fees will increase by 20 percent in the coming year and by 44 percent in 2025 – the total increase in four years is more than 150 percent. All this is paid for by the consumer. This is another ill-considered step,” says Jaak Aab.
