Starting from July 1st, the VAT on food products in Estonia rose to 24%. This is one of the highest in the European Union. The petition initiated on June 30th aims to show the parliament that the high tax rate exacerbates inequality and makes it harder for people to manage their food budgets.
The petition was started by food blogger and MasterChef Estonia winner Jana Guzanova. It is one of the most signed public initiatives. More signatures were collected only against the car tax, which was signed by 65,565 people. Even more signatures may be collected against the VAT increase within a month, until midnight on August 11th.
The signatures collected on the website will be sent to the parliament if more than 1000 are gathered. The leader of SDE, Lauri Läänemets, says that reducing the VAT on food products is necessary. It will help improve people's lives and support Estonian agriculture.
Läänemets believes that food prices in Estonia are too high. Reducing the VAT could change that. However, it must be ensured that the VAT reduction is reflected in store prices and that merchants do not simply increase their profits.
Although the Social Democrats implemented the VAT increase, Läänemets sees no contradiction in supporting its reduction. He says that the Ministry of Regional and Agricultural Affairs started analyzing food prices last year. This has now stopped.
Finance Minister Jürgen Ligi (Reform Party) says that the VAT on food products cannot be reduced because it would fill the pockets of merchants. Education and Research Minister Kristina Kallas (Eesti 200) says that the VAT on food products cannot be reduced because the state has no money.