Trade unions: different types of pensions must be taxed in a uniform way

June 19, 2021

Trade unions: different types of pensions must be taxed in a uniform way

19.06.2021

The Confederation of Trade Unions has sent a letter to the Ministry of Finance and the Ministry of Social Affairs stressing the need to implement the same income tax exemption rate for all pensioners in order to avoid potential discrimination disputes, misunderstandings and unjustified administrative burdens.

Peep Peterson, chairman of the Confederation of Trade Unions, said that trade unions are in favour of raising the income tax exemption limit for pensions, but all pensioners should be treated equally. "Different types of pensions should not be treated differently, because all types of pensions are equally based on the state's obligation to provide for people in old age," Peterson stressed.

"Estonia is held up as an example for the simplicity of its tax system, and it would be very wrong to start abandoning this principle for the weaker members of society," Peterson added, arguing that the change will affect tens of thousands of today's workers.

The Confederation of Estonian Trade Unions is convinced that the social partners, the Confederation of Estonian Trade Unions and the Confederation of Estonian Employers, must also be involved in the decision-making process as meaningfully as possible on such an important issue affecting workers.

 

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