15.6% inflation prompts targeted VAT cuts ahead of proposed standard rate rise to 22% in 2024
Whilst headline inflation rate in the Baltic state of Estonia is falling back – dropping from the August 25% peak to 15.6% in March – the parliament, Riigikogu, is reviewing a targeted cut on some services.
The Bill now in parliament is to reduce the following supplies to 5%:
- Basic foodstuffs
- Restaurant, café and catering services
- Some animal foodstuffs
A number of EU countries are cutting fuel and basics VAT to help households deal with record inflation rates this winter.