TALLINN, March 12 (Xinhua) -- The Estonian government on Thursday decided to cancel a planned increase in excise duties on fuel and electricity, citing economic uncertainty and rising prices.
Prime Minister Kristen Michal announced the decision at a press conference following a cabinet meeting, saying the move reflects the current economic situation.
"At a time when uncertainty and prices are rising, it is unreasonable to keep in force a decision made under different circumstances," Michal said.
The Ministry of Finance will prepare the relevant draft legislation and submit it to the government next week.
The government noted that the full impact of price fluctuations linked to the Middle East crisis on Estonia's economy and state budget will become clearer in the spring economic forecast scheduled for release in April.
Under the original plan, excise duties on gasoline, diesel fuel, fuel oil, natural gas and electricity were set to increase on May 1, 2026. The excise tax on gasoline was to rise by 5 percent and that on diesel by 7 percent. ■