Ministry of Finance: Tax revenues grew in the first half of the year

TALLINN - Tax revenues grew in the first half of the year, according to Kadri Klaos, head of the public finance department at the Ministry of Finance.

"Tax revenues grew by 1.2 percent in the first half of the year, supported primarily by wage growth, the impact of the VAT rate increase, and an expansion of the tax base. In the vehicle market, first-time registrations have recovered more quickly than the secondary market and have reached a level close to that of 2024," Klaos said.

At the same time, consumer confidence remains modest, and the rise in fuel prices, driven by global market developments, continues to put pressure on local consumption. "In June, the general government budget deficit reached 790 million euros, or 1.8 percent of GDP. The deficit was primarily increased by central government expenditures and investments, while the execution of state budget expenditures remained at a similar level to the previous year," Klaos commented.

According to Klaos, an increase in investments and defense spending is expected over the course of the year, which will also lead to growth in the budget deficit.

According to data from the Tax and Customs Board (MTA), over 1.4 billion euros in taxes were collected for the state budget in June, which is 22 million euros less than the previous year. The decrease in revenue was primarily due to lower collections of personal income tax and value-added tax.