Estonia gets 205 new citizens

The Estonian government granted at the Interior Ministry’s proposal citizenship to 205 individuals. All of them had fulfilled the requirements set out in the Citizenship Act. In the case of one individual the application for naturalization was rejected because of the individual did not meet the established requirements.

There were 116,248 people with undefined citizenship living in Estonia as on January 1 this year and 113,173 as on July 1.  Last year 4,228 people and in 2006 4,753 people became Estonian citizens.
The number of new citizens naturalized since Estonia regained its independence in 1991 was 148,175 on July 1. People who had relinquished their Estonian citizenship numbered 2,858.

Source: Estonian Review

Silicon Valley attracts Estonian companies

US innovation centre Silicon Valley is attracting ambitious Estonian companies as a magnet, Eesti Ekspress writes. 

Many local companies want to open a representative office in Silicon Valley and through that fix their presence on the US market. For example software company SourceKibitzer and communication portal Fotki.com.

Read more: BBN

Estonian government to raise VAT rate for repairing state budget

Estonian government is about to make an unpopular decision which would raise the the goods’ current 5 pct VAT rate to 9 pct and would add EEK 270 mln to the state treasury.

The government has basically gave agreement for revising the current 5 pct VAT distinctions, today’s Äripäev writes.

At the moment the Ministry of Finance is at the standpoint that if needed, all lowered VAT rates will be changed to 9 pct, “ Minister of Finance, Ivari Padar, said.

The raise in medications VAT would bring the largest sum of money to the state treasury: EEK 135 mln.

However, the Association of Pharmaceudical Manufacturers in Estonia and the Estonian Hospitals Association are against the tax increase since it would add the Estonian Health Insurance Fund, which currently covers 63 pct of the prices of medications, extra expenses for the total of EEK 85 mln.

The former Minister of Finance, Aivar Sõerd, said that the plan of raising VAT on accommodation establishments is politically wrong decision as the timing is wrong, citing the economic fall.

Source: BBN

Producer price indices increased in July

According to Statistics Estonia, in July 2008 the percentage change in the producer price index was 0.8% compared to June and 7.8% compared to July of the previous year.

In July compared to the previous month as well as to July of the previous year the producer price index was mainly influenced by the increase in prices in the energy supply.Change in the producer price index by economic activity, July 2008

Economic activity June 2008 –
July 2008, %
July 2007 –
July 2008, %
TOTAL 0.8 7.8
Energy supply 7.0 22.2
Mining -0.3 11.6
Manufacturing 0.3 6.5

In July 2008 the percentage change in the export price index was 0.1% compared to June and 4.3% compared to July of the previous year.

In July compared to the previous month the export price index was mainly influenced by the increase in prices in the manufacture of chemicals and chemical products and food products and beverages and by the decrease in prices in the manufacture of wood and wood products and in the manufacture of rubber and plastic products.

In July 2008 the percentage change in the import price index was 0.5% compared to June and 8.8% compared to July of the previous year.

In July compared to the previous month the import price index was mainly influenced by the increase in prices in the manufacture of basic metals and fabricated metal products and in the manufacture of paper and paper products and by the decrease in prices of agricultural products and wearing apparel and leather products.

Source: Statistics Estonia