Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure EE-2022-19/2911 – Updated – measures in Estonia
|Country||Estonia , applies nationwide|
|Time period||Temporary, 01 May 2022 – 31 December 2023|
|Context||War in Ukraine|
|Type||Legislations or other statutory regulations|
Responses to inflation
– Support for fuel expenses
|Author||Ingel Kadarik (Praxis Center for Policy Studies) and Eurofound|
|Measure added||15 September 2022 (updated 01 April 2023)|
The price of the special purpose diesel fuel has increased by 85%. To mitigate the effects such a high increase in energy prices are causing, the Parliament approved changes of the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act on 18 May 2022 reducing the excise duty rate of diesel fuel for specific purposes.
Between 1 May and 31 December 2022 the excise duty rate for special purpose diesel fuel is set to €21 per 1,000 liters. This is the lowest rate allowed in the European Union. Previously, the excise rate for the fuel was €100 per 1,000 liters.
The special purpose diesel fuel is allowed to be used in agriculture. In addition, temporarily between 1 July 2020 and 30 April 2023, it is also allowed to be used in oil shale industry for mining and transport. It can also be used in commercial fishing, although in most cases the use of fuel in this field is exempt from excise duty.
The following updates to this measure have been made after it came into effect.
|29 September 2022||
At the end of 2021, a law was passed, which provided for a four-year gradual restoration of fuel and electricity excise duties to the pre-crisis level, starting from May 1, 2023. The changed security situation in Europe has led to a sharp increase in the price of energy carriers.A new bill was signed to postpone excise duty increases by one year and the pre-crisis level of excise duty rates will be reached in 2027.
It is expected that the wholesale price of the special purpose diesel fuel could decrease by 9.48 cents per liter (nearly 7%).
|Does not apply to workers||
Sector specific set of companies
||Does not apply to citizens|
No special funding required
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
No information available.
The Central Union of Estonian Farmers and the Estonian Chamber of Agriculture and Commerce have expressed their concerns regarding the excise duty rate already in 2021 and thus they are supportive of the temporary reduction of the excise rate.
This case is sector-specific
|Economic area||Sector (NACE level 2)|
|A - Agriculture, Forestry And Fishing||A1 Crop and animal production, hunting and related service activities|
|A2 Forestry and logging|
|A3 Fishing and aquaculture|
|B - Mining And Quarrying||B6 Extraction of crude petroleum and natural gas|
This case is not occupation-specific.
Eurofound (2022), Cut in excise duty rates of special purpose diesel fuel, measure EE-2022-19/2911 (measures in Estonia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/EE-2022-19_2911.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.