The Social Democratic Party Council has adopted a political statement. They want the government to find solutions to reduce poverty among low-income earners and the middle class. One solution is to reduce VAT on food.
The party chairman Lauri Läänemets said that today the poor have high taxes and the rich have low ones. The Social Democrats supported a temporary VAT increase, but they immediately started looking for solutions that would lower food prices.
The party does not support the permanent tax changes of the right-wing parties. These changes make people's lives harder and slow down economic growth. Reducing VAT on food will help reduce poverty.
The council's statement says that the poorest fifth of the population pays 15% of their income in VAT. Meanwhile, the richest fifth pays only 5% of their income in VAT.
The party calls on the government to stop accusing entrepreneurs of greed. Companies operate according to the rules of the state. They want to continue analyzing food prices, which began in the fall of 2024.
The lives of low-income earners and the middle class are also becoming harder due to budget cuts. If education, healthcare, and social care become less accessible, people's spending decreases and their purchasing power declines.
The Social Democrats will hold their summer days at the Nelijärve holiday center in Aegviidu on August 2-3. First, there will be political discussions with the participation of party leaders and experts.