ERR: Parliament Approves 1% Income Tax Cut

On June 16, Parliament passed a measure that will cut the nation's flat income tax rate from its current 21 percent to 20 percent starting from 2015.

The measure, which passed with a vote of 54 to 39, is expected to cost the state 70 million euros per year in lost revenue, rus.err.ee reported.

The loss will be partly offset by a lowering of the ceiling on personal income tax deductions from 3,196 euros to 1,920 euros per year. That adjustment, which would come into effect next year, is likely to bring in about 5 million euros annually.

Read more http://news.err.ee/Politics/75ac29b5-8690-4735-a8f8-58a1bf34c58b