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Estonian logistics businesses want government to cut fuel duty to Latvian level

Citing the need to improve Estonia's competitiveness internationally, transport and logistics sector associations have issued a call for the government to lower the fuel excise duty to the same level with Latvia, informed LETA/BNS.

According to the interest groups, lowering the fuel excise duty would reduce the peripherization of Estonia, help prevent a demise of the haulage sector and prevent the emergence of shadow economy. In addition, the associations say that a lower excise duty would bring additionally 45 mln euros into the state coffers of Estonia as tax income which at present boosts the state budget of Latvia.

As an alternative to lowering the tax rate, the associations are proposing a tax incentive that would enable haulage companies to seek a partial refund of fuel excise duty. A tax incentive like this is being used by Poland and Belgium, speaking of EU member states.

The letter to Minister of Economic Affairs and Infrastructure Kadri Simson, Finance Minister Sven Sester and the economic affairs and finance committee of the Riigikogu has been signed by the Estonian Logistics and Freight Forwarding Association, the Association of Estonian International Road Carriers, the Union of Estonian Automobile Enterprises and the Estonian Oil Association.

(Source: http://www.baltic-course.com/eng/transport/?doc=129617)


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