This summer, many concerts and festivals have taken place in Estonia. Famous artists have performed and more are coming. However, some festivals have had to cancel events due to low ticket sales.
For example, Estonian Funk Embassy canceled its festival EFEFEST. Due to low ticket sales, other festivals like Suvealgus and Samura were also canceled. Yet, Estonians love music and often attend concerts.
There is fierce competition in the cultural sector. Fewer tickets are sold because prices are high. People find it difficult to attend concerts due to high transportation and accommodation costs. Despite this, interest in music remains strong.
Concert organizers want the VAT on tickets to drop to 9%. In European countries, it is lower—for example, 13.5% in Finland, 12% in Lithuania, and 0% in Latvia. In Estonia, the VAT is 24%, one of the highest in Europe.
The Ministry of Culture does not plan to reduce the VAT. They say they support music in other ways, such as targeted subsidies. VAT rates are decided by the Ministry of Finance.
Concerts and festivals also bring money to other businesses, such as catering and accommodation. A lower VAT could help attract more international artists to Estonia.