Estonia collects €1.4 billion in taxes in June

Estonia collected more than €1.4 billion in taxes for the state budget in June, €22 million less than a year earlier, according to the Tax and Customs Board, cited by ERR. The decline was mainly due to lower receipts from personal income tax and value-added tax.

Value-added tax receipts exceeded €390.3 million, down €4.8 million year on year. The Tax and Customs Board said the comparison was affected by exceptionally high receipts in June 2025, before the VAT rate increase.

Personal income tax generated more than €247 million, €30 million less than a year earlier. The lower figure was affected by changes to the tax-free income system introduced at the start of the year. At the same time, the payroll fund grew by 5.4%, resulting in social tax receipts that were €24 million higher than a year earlier.

Corporate income tax receipts reached nearly €102 million, an increase of €300,000. The rise was driven by higher dividend distributions in both the private and public sectors.

Fuel excise duty receipts exceeded €47.5 million, down more than €300,000 year on year. The amount of petrol and diesel released for consumption fell by 1.7%. Tobacco excise receipts totalled €23.6 million, €2.9 million less than in June 2025. Cigarettes released for consumption fell by about 30%, while traditional cigarettes accounted for a smaller share and alternative tobacco products for a larger share.

Alcohol excise receipts stood at €22.5 million, more than €300,000 higher than a year earlier. The Tax and Customs Board said stockpiling of spirits and beer at the end of 2025, before an excise duty increase, continues to affect the quantities released for consumption.

As of July 1, total tax arrears stood at €351.3 million, including €46.1 million in deferred payments. Tax arrears increased by €5.4 million in June, with the largest rises recorded in motor vehicle tax, up €2.6 million, VAT, up €2.4 million, and social tax, up €1.2 million.

There were nearly 78,700 taxpayers with arrears at the end of June, 24,300 more than at the end of May.