The state budget control special committee discussed the topic of online casino taxes on Monday. They considered how reducing taxes affects state funds and cultural subsidies. Participants included Cultural Endowment leaders, tax office representatives, and finance ministry employees.
Reinsalu stated that according to the finance ministry's forecast, the state will lose 31 million euros. Finance ministry officials knew this earlier, but it was a political decision. Now it's difficult to change. Reinsalu believes taxes should quickly be raised back.
Cultural Endowment director Margus Allikmaa said that tax reductions damage cultural subsidies. The Cultural Endowment must reduce funding distribution and financing of cultural buildings. If tax reductions continue, the situation will become even harder.
Allikmaa added that some cultural building payment schedules need to be extended. This doesn't directly affect people, but the Cultural Endowment's funds will decrease. Currently there is only one company in Estonia with an online casino license. If other companies also get licenses, tax revenue may not come until next year.
Allikmaa stated that reducing taxes is wrong. Estonia's tax is already the lowest in Europe. A small tax increase would bring additional revenue, as it has before. Tax reduction isn't necessary and harms state funds.
Allikmaa also criticized the Eesti 200 party that fought for tax reductions. He said too much trust was placed in gaming operators. Other ways must be found to fund sports infrastructure. The current tax reduction brings no benefit.