Teemu Kilpiä: Prisma supports lowering VAT on food in Estonia
According to Teemu Kilpiä, Regional Manager of Prisma Estonia, Prisma supports lowering the VAT on food products in Estonia: "Compared to most European countries, the average income of Estonian families is lower. In fact, the purchasing power of Estonians is one of the lowest in Europe. This has led to a situation where many families find it difficult to afford sufficient and nutritious food. The most efficient way to influence the situation is to lower the VAT on food. Prisma promises to fully reflect the reduction of VAT on food in its prices."
A survey commissioned by Prisma and organised by Norstat in January revealed that, compared to previous quarters, a downward trend was noticeable in the respondents' assessment of coping in the fourth quarter of 2024. In addition, in terms of households coping, there have been significantly more people in the last quarters of the year who believe that the situation will get worse. In the fourth quarter, the proportion of such respondents amounts to 44% already, meaning a 14% increase compared to the third quarter of 2024.
One of the main reasons why people's economic well-being is decreasing and their view of the future is becoming more pessimistic is certainly the high VAT rate, which on food in Estonia is one of the highest in Europe. This year we are facing an increase in VAT, income tax and various excise duties, and the car tax has also come into effect. This makes the cost of living even higher.
Lower taxation of basic food products has long been in use in several neighbouring countries, allowing people to keep food costs under control and helping families with lower incomes eat nutritious food. It's about time Estonia took a similar approach.