The Minister of Finance, Keit-Pentus-Rosimannus, is taking a bill to the government to suggest extending the current excise duty rates by a year and postponing the excise duty increase planned for 2023.
The proposal concerns diesel fuel, heating oils, natural gas, motor fuel, and liquid gas for fuel and electricity. The taxation of the special-purpose diesel fuel used in the agricultural sector will also get an extension by one year at the minimum level the European Union allows, according to the bill.
According to the draft submitted by the Minister of Finance, the previously lowered excise duty rates will be valid for one more year until April 30, 2024. This period will be followed by gradually restoring excise duty rates to pre-crisis levels over four years (2024-2027).
"Restoring excise duties to the pre-crisis level would give the wrong impetus and message in the current situation of rising prices. This must be avoided," said Minister of Finance Keit Pentus-Rosimannus. She adds the vitality for the farmers to get assurance that the special-purpose diesel will have the lowest possible tax rate until the spring of 2024.
These changes affect the Alcohol, Tobacco, Fuel, and Electricity Excise Act and the Act amending it, which will enter into force on January 1, 2023.