February tax revenues in Estonia rose by 7.2% YoY, driven by stronger energy consumption, fuel sales and economic activity, even as income tax collections dipped.
The state collected EUR 1.18 billion in taxes last month, up by 7.2%, according to the Estonian Tax and Customs Board (MTA). Growth was led by value-added tax (VAT), social tax, fuel excise and corporate income tax.
VAT revenue totaled more than EUR 326 million, up by nearly EUR 50 million.
According to Raili Roosimaa, deputy director general for taxes at the MTA, energy use was a key driver.
“Electricity and gas consumption in February was significantly higher than a year earlier,” she said. “Prices were also higher this year, which increased tax revenue from the energy sector.”
Retail also contributed to growth, particularly a sharp rebound in motor vehicle sales.
“In retail, the increase was driven mainly by a clear recovery in car sales,” Roosimaa said, noting sales volumes were up significantly.
Personal income tax revenue, meanwhile, fell to EUR 241.7 million, down by EUR 14.6 million, due to a change at the start of the year in how the basic exemption is calculated.
At the same time, total payroll grew by 4.8%, boosting social tax receipts by EUR 19 million, to EUR 431.4 million.
Corporate income tax rose to EUR 43.7 million, up by more than EUR 9 million. The increase was driven mainly by dividend payments from the private sector, particularly firms in professional services, information and communications, trade and energy.
Fuel excise revenue climbed by EUR 11.4 million, to nearly EUR 51 million, supported by higher demand.
“On year, consumption volumes increased for gasoline, diesel, specially marked diesel and heating oil released for consumption,” Roosimaa said. “In February, total growth was 15.1 million liters, which boosted excise revenue, especially from gasoline and diesel.”
Retail fuel sales rose the most in Harju, Parnu and Tartu counties.
February tobacco and alcohol excise revenues were lower than a year earlier, affected by stockpiling in December 2025, which was even stronger than the previous year.
The MTA expects tobacco excise revenue to rise in coming months, with early March data already showing an uptick.
As of March 1, Estonia’s total tax debt stood at EUR 356.4 million, EUR 55.6 million of which is under payment plans. (ERR)