
Achievements and Activities in 2024
According to its statutes, one of the chamber's key objectives is to represent its members' interests in shaping Estonia's economic policy and to participate in submitting proposals for improving legislation.
In 2024, the chamber's lawyers reviewed more than 5,000 pages of legislative materials and submitted 202 written opinions to ministries, the parliament, and other state institutions on draft laws, development plans, strategies, and other documents. The chamber also made numerous proposals for amending and improving existing legislation.
In 2024, we achieved several significant victories with a positive impact on businesses exceeding 50 million euros annually. For example, at the request of the chamber and other business organizations, the state abandoned the introduction of packaging tax and sugary drink tax. At the chamber's proposal, the tax-exempt thresholds for per diem allowances for foreign business trips, reimbursements for the use of personal cars for business purposes, and the list of health promotion expenses eligible for tax exemptions were increased. Additionally, audit and review thresholds were raised by 25% based on the chamber's suggestion.
Representatives of the chamber also participated in various working groups.
Overview of Key Activities in 2024 by Topics
Economic Competitiveness
- Submitted 11 proposals to the Prime Minister to enhance economic competitiveness.
- Provided proposals on the economic policy plan and its action plan.
- Requested that the focus of the energy sector development plan be on a competitive electricity end price.
- Proposed creating more favorable support measures to attract large investments to Estonia.
- Emphasized the need for the government to ensure tax stability for businesses.
Taxes and Fees
- Opposed additional taxation of corporate profits.
- Submitted 11 proposals to amend the Security Tax Act.
- Proposed that large electricity consumers be given discounts on renewable energy charges.
- Criticized the introduction of the automobile tax.
- Success: The tax-free daily allowance for foreign business trips was increased.
- Following the Chamber’s proposal, the tax-free mileage allowance for using personal vehicles for business increased.
- Victory: Expanded the list of health promotion expenses eligible for tax exemption.
- The Ministry of Climate abandoned plans to introduce a packaging tax.
- Success for business organizations: No tax on sugary drinks will be introduced.
- Highlighted that local governments need stronger incentives to support business development.
- Proposed a larger share of mineral resource extraction fees be allocated to local governments.
- Opposed a sharp increase in land tax amounts.
- Suggested exempting electricity consumers from frequency reserve fees in 2025.
- Asserted that the government should not impose additional fees on businesses for performing its core duties.
- Stated that taxing anonymous envelope wages with social tax should be based on solid evidence.
- Alcohol excise duty will not increase on July 1, 2025.
- Criticized the lack of transparency in raising food and veterinary inspection fees.
- Supported amendments related to entrepreneurial accounts.
Workforce
- Proposed changes to the weekly rest period regulations.
- Supported the introduction of agreements for flexible working hours.
- Suggested making regulations for fixed-term employment contracts more flexible.
- Proposed solutions to address the issue of insufficient immigration quotas.
- Emphasized that annual leave should be uniformly 28 days in both the private and public sectors.
- Highlighted that allocating immigration quotas by sector does not solve the core issue.
- Opposed three proposed restrictions on the use of foreign labor.
- Gained the right for employees on long-term sick leave to engage in suitable work.
- The Ministry of Social Affairs, at the Chamber’s request, abandoned one proposed labor law amendment.
- Asserted that changes to the unemployment insurance system should not increase costs and must motivate people to work.
- Argued that internship agreements do not require regulation at the EU level.
Bureaucracy and Regulatory Obligations
- Success: The thresholds for audits and reviews increased by 25%.
- Proposed simplifying and accelerating the processes for various planning and permits.
- Suggested reducing employer burdens related to wage garnishments for indebted employees.
- Opposed government regulation of the method for exchanging invoices between companies.
- Victory: Several of the Chamber’s proposals were included in the Whistleblower Protection Act.
- Supported abolishing the requirement to issue paper receipts.
- Stated that reducing bureaucracy requires reducing the volume of legislation.
Environment
- Criticized the Climate-Resilient Economy Act draft for failing to offer investment security to businesses.
- Stressed that the 2040 climate goal must be realistic.
- Submitted multiple proposals to amend the waste reform bill.
- Victory: No target rate will be applied to sales packaging.
- Highlighted the need for significant improvements to the draft amendment to the Nature Conservation Act.
Other Topics
- Reached out to the Ministry of Social Affairs again to address the availability of occupational health doctors.
- Proposed a 20% reduction in public sector employees involved in policy-making, administration, and management.
- Called for an end to the expedited processing of laws.
- Supported the direction of the education reform.
- Criticized the lack of clarity in requirements for building shelters and safe zones.
- Asserted that the draft amendment to the Competition Act is not mature enough for adoption.
- Victory: Consumer Dispute Committee decisions will not become binding.
- Supported rounding rules for 1- and 2-cent coins.
- Highlighted the need to amend the Advertising Act.
- Success: Capital requirements for credit collection and purchase companies are halved.
- Advocated for allowing vehicles to stop on sidewalks for loading goods.
- Stated that the ultimate beneficial ownership register should remain immediately accessible.
- Emphasized that the Alcohol Consumption Reduction Plan should not simply increase bureaucracy.
- Identified issues in the draft Gender Equality and Equal Opportunities Act.
- Supported making investment account rules more flexible.
- Called for updating the private copying levy system.
- Suggested improvements to the gender balance proposal for listed company management bodies.
- Proposed equal funding principles for private and public research institutions in the draft law on research, development, and innovation.
Comprehensive Overview of Key Activities in 2024
COMPETITIVENESS OF THE ECONOMY
We submitted 11 proposals to the Prime Minister to enhance economic competitiveness
In October 2024, we sent 11 key proposals to Prime Minister Kristen Michal, aimed at improving the competitiveness of Estonian businesses, reducing their burdens and costs, and making the public sector more efficient while cutting its expenses. The proposals addressed topics such as ensuring tax stability, making labor laws more flexible, conducting employee health checks, reducing bureaucracy, increasing local governments' motivation to support entrepreneurship, and reducing the number of policy-making staff in the public sector.
We provided input on the economic policy plan and its action agenda
In 2024, under the leadership of the Ministry of Economic Affairs and Communications, an economic policy plan was developed with a vision to double Estonia's economy by 2035. This document includes eight key principles of economic policy, focusing on promoting exports, reducing bureaucracy, attracting investments, and increasing added value. The chamber considers this document a positive step but suggested several improvements ranging from tax policy and legislation to investments and flexible labor relations. The ministry incorporated many of the chamber's proposals.
By the end of 2024, a more detailed action plan for implementing the economic policy in 2025 was completed. However, the chamber believes that this plan does not align well with business expectations due to a lack of clear focus. The plan contains 45 activities, many of which are likely to have minimal or even negative impacts on the competitiveness of businesses. The chamber recommended focusing on 5-10 critical topics for businesses and setting aside less impactful activities. For example, activities should prioritize ensuring that electricity prices remain competitive for businesses.
We urged that the energy policy focus on competitive electricity prices
The Ministry of Climate has drafted an energy development plan until 2035, which outlines goals and actions for transitioning to climate-neutral energy production in electricity, natural gas, liquid fuels, and district heating. The chamber notes that the draft lacks sufficient detail on how Estonia plans to ensure that electricity prices remain competitive compared to other EU countries or the surrounding region by 2035. The energy development plan is set to be finalized in 2025.
We proposed creating more favorable support measures to attract large investments
In 2024, the chamber informed the government that given the current security and economic policy situation, the conditions for the existing large investment support scheme need to be made significantly more attractive for investors. For instance, the maximum support amount, currently set at €3 million, should be raised substantially. In December 2024, the Ministry of Economic Affairs and Communications introduced conditions for a large-scale investment support scheme. The scheme aims to promote investments of at least €100 million in the Estonian economy, support the competitiveness of exporting companies, and enhance their export capabilities and added value. The total budget for the scheme is €160 million.
We emphasized the need for tax stability for businesses
Throughout 2024, the chamber repeatedly highlighted to various ministries that since the government had introduced new taxes or increased existing rates in 2023 and 2024, ensuring tax stability in the coming years is essential for businesses. This means that no new taxes should be imposed, nor should existing taxes be increased, until the security tax law is repealed. This is critical for maintaining business confidence, including confidence in investment decisions.
TAXES AND FEES
Opposing Additional Taxation on Corporate Profits
We opposed the additional taxation of corporate profits. Instead, we proposed to the government that a temporary national defense fee could be implemented. This fee would be payable before submitting the annual report, calculated at 0.1% of a legal entity’s total assets. We emphasized that a temporary corporate income tax of 2% on profits would severely harm the attractiveness of Estonia's business environment and undermine investor confidence. The government dismissed our proposal and introduced the draft Security Tax Act, which requires companies to pay 2% of their profits for 2026–2028 as part of the new tax scheme.
Submitted 11 Proposals to Amend the Security Tax Act
We sent several proposals to the Finance Committee of the Parliament, aimed at simplifying, clarifying, and improving the transparency of the planned security tax while reducing the incentive for companies to hide profits. Key suggestions included: ensuring the tax remains temporary, directing revenue towards additional defense expenses, avoiding double taxation, allowing profit tax paid to be offset against dividend tax, publishing paid profit tax amounts, and paying interest on overpaid taxes. The Parliament only considered our recommendation on avoiding double taxation, adding a clarification to the draft law that consolidated annual reports must base the tax on the parent company’s unconsolidated profit statement.
Proposal for Renewable Energy Fee Discounts for Large Electricity Consumers
To attract investment and support major electricity consumers operating in Estonia, we proposed exempting them from renewable energy fees or setting a cap on such fees. We suggested that any revenue loss for renewable energy producers be compensated from the state budget. This measure would help maintain a stable and competitive electricity price compared to neighboring regions.
Criticism of the Proposed Vehicle Tax
We opposed the introduction of an annual motor vehicle tax and a one-time registration fee starting in 2025. We stressed that implementing new taxes during an economic downturn is counterproductive to improving the competitiveness of businesses.
Acknowledging the likelihood of the tax being implemented, we proposed several amendments to the draft legislation. These included restricting the tax to vehicles actively in use (with valid insurance), reducing or partially refunding the tax if a vehicle is not registered in Estonia for the entire year, and earmarking revenue exclusively for road infrastructure development and promoting cleaner transportation options. While most proposals were rejected, the Parliament adopted our recommendation to reduce the tax for vehicles owned by legal entities based on vehicle age, a principle initially limited to privately owned vehicles.
Success: Increased Tax-Free Daily Allowance for Foreign Business Trips
In January 2024, we again proposed to the Ministry of Finance an increase in the tax-free daily allowance for foreign business trips, unchanged since 2016 and no longer meeting company and employee needs. The Ministry accepted the proposal, raising the tax-free allowance from January 1, 2025. The new rates are €75 (previously €50) for the first 15 days and €40 (previously €32) for each subsequent day.
Increased Tax-Free Reimbursement for Personal Vehicles Used for Work
In January 2024, we proposed increasing the tax-free reimbursement rate for personal vehicles used for work purposes, unchanged for nearly a decade. The Ministry of Finance accepted the proposal. From January 1, 2025, the tax-free reimbursement rate increased from €0.30 to €0.50 per kilometer, with a monthly cap raised from €335 to €550 per individual. This change will reduce the tax burden on businesses by up to €1.5 million annually.
Expansion of Tax-Free Health Promotion Expenses
Starting January 1, 2025, expenses related to massages were added to the list of tax-free health promotion expenses (up to €400 per year) following the chamber’s proposal. Additionally, dental care and services provided by certified nutrition counselors are now tax-free within the same limit. This change is expected to reduce businesses’ tax burden by up to €0.5 million annually.
The chamber proposed expanding the list to include all expenses directly related to healthcare services, but this suggestion was not included in the final law. Furthermore, the chamber suggested increasing the annual tax-free limit for health promotion expenses from €400 to €1,000, but this was also not accepted.
Victory: Abandonment of the Packaging Tax
In March 2024, the Ministry of Climate proposed a waste reform that included a packaging tax. The chamber, alongside other business organizations, strongly opposed the tax, arguing that no other EU countries implement such a tax and existing measures already address environmental goals. Higher recycling targets for packaging waste were introduced in 2025. In October 2024, the ministry announced it would not proceed with the packaging tax, which was expected to generate approximately €20 million annually.
Collective Success: Sugary Drink Tax Abandoned
In spring 2024, the chamber collaborated with several industry associations (Estonian Food Industry Association, Estonian Retailers Association, Estonian Soft Drink Producers Association) to urge the government to abandon the idea of a sugary drink tax. While the tax aimed to improve public health, no compelling evidence supported its effectiveness. The Parliament heeded these concerns and dropped the tax proposal in autumn 2024. The tax was projected to raise approximately €25 million annually.
Encouraging Local Governments to Support Entrepreneurship
The chamber submitted proposals to the Ministry of Regional and Agricultural Affairs to reform the tax system to better motivate local governments to support business development. Currently, local governments primarily rely on personal income tax, which is allocated to the municipality of residence. The chamber proposed splitting this tax, with half allocated to the municipality of residence and half to the municipality of employment.
Increasing Local Governments’ Share of Resource Extraction Fees
The chamber repeatedly suggested that local governments should receive a larger share of environmental fees related to resource extraction to enhance their revenue base and incentivize economic activities involving resource mining. The Ministry of Climate included this idea in its draft for amending the Environmental Charges Act and the Earth’s Crust Act. The proposed changes may involve redistributing current fees or slightly increasing fee rates by raising the lower and upper limits for mining permits. However, the chamber opposes any increase in fee rates and supports only a redistribution of the existing revenue. The draft legislation is expected to be finalized in 2025.
Opposing the Sharp Increase in Land Tax
In March 2024, the Ministry of Regional and Agricultural Affairs proposed amendments to the Land Tax Act, which included raising the annual growth cap for land tax from 10% to 50% and increasing the maximum land tax rate for business and industrial land from 1% to 2% starting in 2025. The chamber opposed these changes, but its criticism was not considered.
Proposal: Exempt Electricity Consumers from Frequency Reserve Fees in 2025
In February 2025, Estonia, Latvia, and Lithuania will disconnect from Russia’s power grid and synchronize with the Continental European system. This requires Estonia's grid operator, Elering, to purchase frequency reserves, estimated to cost €60 million annually. The general principle is that both electricity consumers and producers share these costs. The chamber proposed to the Ministry of Climate that in 2025, consumers and producers should be exempt from these fees, with the cost covered by congestion charges. Lithuania will implement a similar solution. In January 2025, the Competition Authority approved changes exempting consumers and producers from frequency reserve fees for five months (February to June 2025), during which Elering will bear the costs.
State Responsibilities Should Not Impose Additional Fees on Businesses
Together with the Estonian Employers’ Confederation, the chamber opposed the state’s plan to impose an additional regulatory fee on telecommunications companies to fund the Consumer Protection and Technical Regulatory Authority. The chamber expressed concern about a trend of shifting state responsibilities, such as oversight, onto the private sector. The government abandoned this plan in 2024.
Taxation of Undeclared Wages Requires Solid Evidence
The Ministry of Finance proposed changes to the Income Tax Act in late 2024, allowing tax authorities to treat undeclared wages as fringe benefits, subject to both income and social taxes. Currently, only income tax applies. While the chamber supports efforts to prevent tax evasion, it emphasized that the tax authorities should not hastily interpret company practices as undeclared wage payments, ensuring fairness in tax proceedings.
Alcohol Excise Duty Will Not Increase on July 1, 2025
In September 2024, the Ministry of Finance proposed a 5% increase in excise duties on fuel, alcohol, and tobacco starting July 1, 2025. The chamber argued against this, citing insufficient analysis of the cumulative impact on cross-border trade, taxpayers, and businesses. The Parliament partially accepted the chamber’s proposal, canceling the planned alcohol excise duty increase.
Transparency Issues in Food and Veterinary Supervision Fees
In January 2024, the chamber, along with the Estonian Food Industry Association, Estonian Retailers Association, and Estonian Agricultural and Commerce Chamber, sought a review from the Chancellor of Justice regarding the unclear basis for hourly supervision fees in food and veterinary inspections. While the regulation was found to align with the Constitution, the lack of transparency in fee calculations was criticized.
In November 2024, the Ministry of Regional and Agricultural Affairs proposed raising 2025 fees, providing more explanations but failing to justify why some increases significantly exceeded inflation and average wage growth.
Support for Changes to the Entrepreneurial Account
The chamber supported reforms to the entrepreneurial account system, which abolished the higher tax rate on entrepreneurial income exceeding €25,000 annually. Previously, income above this threshold but below €40,000 was taxed at 40%. Starting January 1, 2025, the tax rate on entrepreneurial income is a flat 20%, reducing the tax burden and simplifying the system.
WORKFORCE
The regulation on weekly rest periods needs to be amended
The Chamber (ECCI) once again submitted a proposal in May 2024 to the Ministry of Economic Affairs and Communications to amend the wording of the regulation on weekly rest periods stipulated in the Employment Contracts Act. The proposal suggests that the daily consecutive rest period for shift workers, combined with their weekly consecutive rest period, must be at least 36 hours, and for other employees, at least 48 hours. This proposal was prompted by a 2023 ruling of the European Court of Justice, which stipulates that the daily rest period must also be included in the weekly rest period. This new interpretation means that shift workers must be granted uninterrupted weekly rest of 47 hours instead of the previous 36 hours.
The Ministry accepted the Chamber's proposal and included a provision in the draft amendment to the Employment Contracts Act that states the weekly rest period includes the daily rest period. Upon implementation, the previous long-standing practice will be restored, whereby employers must ensure that shift workers are given a minimum of 36 consecutive hours of rest per week. The draft completed its coordination round in 2024 but has yet to receive government approval or reach the Parliament (Riigikogu).
Flexible working time agreements may become possible
Over the past few years, the Chamber has repeatedly proposed amendments to the Employment Contracts Act to allow employers and employees to agree on more flexible working hours. Under the current Act, the workload must be agreed upon as a specific number, e.g., 20 hours per week, but ranges, such as 20–30 hours per week, are not permitted.
In May 2024, the Ministry of Economic Affairs and Communications introduced a draft amendment to the Employment Contracts Act that would include a regulation enabling flexible working time agreements. According to the amendment, employers and employees could agree on additional hours without these hours being considered overtime.
The draft includes several additional conditions specifying which employees and under what circumstances flexible working time agreements may be made. The Chamber supports the proposed change but has submitted several suggestions to the Ministry for even more flexibility. The Ministry considered most of the Chamber's proposals. For example, the updated draft allows flexible working time agreements for employees pursuing vocational education or parents of children under seven. The earlier version of the draft did not permit such employees to enter into flexible working time agreements. Additionally, the Chamber's proposal removed a requirement limiting the agreement on additional hours to a maximum of ten hours. In the updated version, the parties can agree on additional hours up to the full-time workload.
The draft completed its coordination round in 2024 but has yet to receive government approval or reach the Parliament.
Proposal to make fixed-term employment contract regulations more flexible
The Chamber repeatedly proposed in 2024 to amend the Employment Contracts Act to allow fixed-term contracts to be concluded without a justified reason. The law should also be made more lenient regarding the restrictions on consecutive fixed-term contracts to prevent such contracts from easily converting into indefinite ones. This proposal was not included in the 2024 draft legislation.
Proposed solutions for the issue of insufficient immigration quotas
In 2024, the Chamber proposed several solutions to the issue of immigration quotas. One suggestion was to increase the quota. Another was to exclude certain foreign nationals or occupations from the quota. For instance, residence permits for foreign nationals whose professions are in shortage according to OSKA reports and require extensive training and prior knowledge (e.g., engineers, equipment, and machine operators) could be excluded from the quota. The Chamber also suggested that if a foreign national is employed by a "trustworthy employer," their residence permit should not count towards the immigration quota. Criteria for trustworthy employers would need to be established. A fourth solution was to exempt foreign nationals working for a company that, due to new investments, has created a minimum number of new jobs in Estonia. The government promised to propose its solution in 2025.
Emphasizing equal vacation time in the public and private sectors
The Chamber opposed the Ministry of Finance's proposal to amend the law to extend the vacation time for state and local government employees from the current 28 calendar days to at least 35 calendar days. The Ministry considered the Chamber’s criticism and abandoned the proposal. The Chamber also proposed reducing the vacation time for civil servants from 35 to 28 calendar days, but this suggestion was not taken into account in 2024.
Division of immigration quotas by sector does not solve the real problem
The Ministry of the Interior proposed dividing the 2025 immigration quota among various sectors. The Chamber opposed this, arguing that such division introduces additional artificial restrictions and does not address the underlying problem. By the end of 2024, the Ministry had not decided whether or how to divide the quota.
The Chamber opposed three restrictions on hiring foreign workers
The Ministry of the Interior drafted an amendment to the Aliens Act that, while reducing the administrative burden for foreign nationals and their employers, introduced new restrictions on hiring foreign workers. The Chamber opposed a provision requiring foreign nationals to work temporarily in Estonia only with a long-term visa. The Ministry accepted the Chamber’s position and removed this point from the draft. Additionally, the Chamber opposed a requirement that employers must have conducted economic activities in Estonia for at least six months to hire foreign nationals. The Ministry dropped this requirement. However, the Chamber did not support a proposal restricting the hiring of foreign workers to employers registered in the Estonian Commercial Register, but this provision remained in the draft. The amendment to the Aliens Act reached Parliament by the end of 2024.
Workers on extended sick leave gained the right to perform suitable work
The Chamber supported a legislative amendment that came into force on May 15, 2024, allowing workers on sick leave for at least two months to agree with their employer to perform part-time work if suitable.
Social Ministry abandoned one labor law amendment at the Chamber's request
Initially, the Ministry of Social Affairs proposed amending the Employment Contracts Act to allow employment contracts to be terminated if the employee’s health condition prevents them from performing their duties for six months. The current law permits termination after four months. The Chamber argued that six months is too long for employers to accommodate an employee unable to perform their duties, and the Ministry withdrew the proposal.
Changes to the unemployment insurance system must not increase costs and should motivate people to work
The Ministry of Economic Affairs and Communications drafted a bill to create a new benefit under the unemployment insurance system – a basic unemployment insurance benefit – replacing the current unemployment allowance. As a result, individuals would receive either the existing income-based benefit or the basic benefit in case of job loss. The Chamber emphasized that these changes should not increase unemployment insurance contributions and should incentivize people to return to work. As of late 2024, the bill’s proceedings in Parliament were still ongoing.
Chamber opposes EU regulation of internship agreements
The European Commission drafted a directive proposal to improve the working conditions of interns and combat the misuse of internships as substitutes for standard employment. The Chamber argued that the issues addressed by internship agreements are not relevant in Estonia, and overregulation could discourage companies from offering internships to young people.
BUREAUCRACY AND REGULATORY OBLIGATIONS
Success: Thresholds for audits and reviews increased by 25%
In spring 2023, the chamber (ECCI) approached the Ministry of Finance with a proposal to raise the thresholds for mandatory audits and reviews to reduce companies' workload and costs. The Ministry of Finance considered the chamber's proposal and introduced a bill to increase the thresholds for audit and review obligations by 25% for assets and sales revenue. Although the chamber initially suggested a 50% increase, this proposal was not supported. The new thresholds apply retroactively to reporting periods starting on or after January 1, 2024, and the corresponding reports. As a result, approximately 600 companies will be exempt from review obligations, and over 500 companies will have their audit obligations replaced by review obligations. The increased thresholds are expected to reduce companies' costs by around €2 million annually.
Chamber’s Proposal: Simplify and accelerate the processing of various permits and plans
The chamber repeatedly urged the government to find swift solutions to make the processing of various permits and plans significantly faster for businesses. The government has pledged to address this issue comprehensively in 2025.
Proposal to reduce employers' burden concerning garnishment orders for employees' wages
When a bailiff sends an employer a garnishment order for an indebted employee’s wages, the employer incurs additional obligations and costs unrelated to its core business. The chamber repeatedly raised this issue with the Ministry of Justice in 2024 and proposed several solutions. While the problem was not resolved in 2024, the Ministry of Justice promised to analyze it and include it in the development plan for amending enforcement regulations, expected to be completed in 2025.
Approach to solve the issue of occupational health doctors’ availability
The chamber once again called the Ministry of Social Affairs' attention to the problem of occupational health doctors' availability. It proposed allowing family doctors to provide occupational health services for workplaces with minimal risk factors, such as office jobs. The Ministry of Social Affairs responded that ensuring the sustainability of employee health checks is a critical area requiring a comprehensive approach.
Position: The state should not regulate how companies exchange invoices
The Ministry of Finance introduced a draft amendment to the Accounting Act, allowing all buyers registered in the Commercial Register as e-invoice recipients to demand e-invoices conforming to European standards from accounting entities when purchasing goods or services. While the chamber supports the promotion of e-invoices, it opposed this amendment, arguing that the state should not interfere in business-to-business relations without good reason. The chamber believes this change will not enhance the adoption of e-invoices, will create confusion among companies, is unnecessary, and constitutes overregulation. The chamber’s opinion was not considered, and the amendment will take effect on July 1, 2025.
Success: Several chamber proposals included in the whistleblower protection law
On September 1, 2024, the Whistleblower Protection Act, aimed at protecting those reporting workplace violations of EU law, came into force. Several proposals from the chamber were included in the law. For example, at the chamber’s suggestion, a provision was added allowing companies within the same group to share or jointly manage an internal reporting channel.
Support for abolishing the mandatory issuance of paper receipts
The Ministry of Economic Affairs and Communications drafted an amendment to the Consumer Protection Act, aiming to remove the obligation for merchants to automatically issue paper receipts to consumers and allowing merchants to stop sending duplicate monthly paper invoices by mail. The chamber supports these planned changes.
Reducing bureaucracy requires limiting legislative volume
The Minister of Justice and Digital Affairs called for proposals to reduce bureaucracy in the legislative process. According to the chamber, the most effective way to reduce the burden on officials and stakeholders is to limit the volume of legislation. This approach helps avoid overregulation and, in many cases, reduces the long-term costs and burdens associated with implementing and monitoring new rules for both the public and private sectors.
ENVIRONMENT
Draft Climate-Resilient Economy Act does not provide investment certainty for businesses
In 2024, the Ministry of Climate developed a draft Climate-Resilient Economy Act, aiming to establish greenhouse gas emission targets. According to the chamber, the draft has several issues: it does not sufficiently address the preservation of businesses' competitiveness, fails to guarantee investment certainty, and is based on an impact assessment with significant shortcomings. The chamber opposed the hasty processing of such a crucial and far-reaching bill without a comprehensive impact assessment or clarity about its actual implications for businesses and society. The chamber requested a suspension of the bill’s processing until additional impact assessments are completed. The draft will continue to be discussed in 2025.
2040 climate target must be realistic
In 2024, the European Commission proposed a target to reduce greenhouse gas emissions in the EU by 90% by 2040 compared to 1990 levels. This interim target is designed to ensure that the EU achieves climate neutrality by 2050.
The chamber submitted several principles to the Ministry of Climate that should guide the establishment of climate targets. These include considering the measures required to achieve the target, their societal impacts—particularly on businesses and individuals—and who will bear the associated costs and to what extent. Targets should also account for technological advancements and global competitiveness. Additionally, a thorough socioeconomic impact assessment must be conducted before setting and pursuing such goals.
Chamber proposed several amendments to the Waste Reform Bill
In November 2024, the Ministry of Climate introduced a draft Waste Reform Bill, which includes significant changes to the collection of packaging waste. The chamber submitted multiple proposals to the ministry aimed at preventing unreasonable costs for businesses placing packaged goods on the market. The bill's discussion will continue in 2025.
Success: No specific target set for sales packaging
Initially, the Ministry of Climate intended to establish separate collection or recycling targets for sales packaging as part of the waste reform. However, following proposals from the chamber and other business organizations, the ministry abandoned this idea. Since it is not feasible to accurately distinguish which packaging items in the collected waste stream are sales packaging, determining the portion collected or recycled reliably was deemed impossible.
Draft amendments to the Nature Conservation Act need significant revisions
The Ministry of Climate plans to amend the Nature Conservation Act to modernize rules for protecting nature. The draft includes proposals to protect 30% of Estonia's terrestrial area, ban clear-cutting and edge cutting in protected and conservation areas, and prohibit the reconstruction of drainage systems or removal of sediments in protected areas without the approval of the natural object’s manager. The chamber submitted several proposals, including the removal of all regulations related to logging as currently presented and the inclusion of a provision ensuring fair compensation to landowners for restrictions imposed on protected natural sites. A revised version of the bill was introduced before Christmas, incorporating some of the chamber's proposals, such as significantly reducing fines for violations of the Nature Conservation Act.
OTHER TOPICS
Chamber’s Proposal: Reduction in the Number of Public Sector Employees Involved in Policy-Making, Administration, and Management by 20%
We proposed a reduction of 10% in 2025 and another 10% in 2026 in the number of employees in public sector organizations engaged in policy-making, administration, management, distribution of subsidies, and oversight. Primarily, this applies to central government organizations, such as ministries, various agencies and inspections, organizations handling subsidies, and social security funds. Reducing the number of employees would save tens of millions of euros annually in public sector expenses. Additionally, this measure would encourage public sector organizations to focus on essential tasks and discontinue dealing with lower-priority issues, leading to optimized work processes, improved management, and reduced bureaucracy. Exceptions should be made for organizations responsible for internal and external security, as well as the medical and education sectors.
Fast-Tracking of Legislation Must Stop
The Chamber and 39 other business organizations sent a joint appeal to the Prime Minister in October 2024, condemning the state’s continued disregard for the principles of good legislative practice. For example, feedback periods for draft legislation are often just a few days, or businesses are not consulted at all on proposals with significant impact. We highlighted this issue repeatedly throughout the year.
Education Reform Moving in the Right Direction
In February 2024, the Ministry of Education and Research proposed a draft law that, among other changes, raises the compulsory education age to 18, limits free vocational training for adults, and abolishes optional exams for primary schools and school-leaving exams for gymnasiums.
The Chamber supported raising the compulsory education age and limiting free vocational training but opposed abolishing exams as a graduation requirement. We believe eliminating exams would not help students better acquire the curriculum or improve education quality. The ministry took our criticism into account and abandoned this change.
We were also critical of the proposal to extend vocational secondary education programs to four years, as there is no practical need for such a change. It would reduce system flexibility, incur unreasonable costs, and there are not enough teachers to implement it. The Parliament passed the bill in December 2024, with updates taking effect on September 1, 2025.
Requirements for Shelters and Refuge Locations Are Unclear
The Ministry of the Interior prepared a draft law to amend the Emergency Act and other related laws, introducing requirements for shelters and emergency arrangements. The Chamber informed the ministry that several points in the draft needed clarification, the impact assessment needed to be expanded, and more specific requirements for shelters and refuge locations were necessary to evaluate the actual impact. The legislative process will continue in 2025.
Amendments to the Competition Act Are Not Ready for Adoption
Together with 11 other business organizations, we submitted a joint appeal to the Economic Affairs Committee of the Parliament and the Ministry of Justice, expressing ongoing concerns about the draft law amending the Competition Act. The proposal introduces a new type of procedure for handling competition-related violations, giving administrative courts the authority to impose fines on companies.
The draft is unsuitable for adoption because the selected procedure type is flawed, critical issues remain unresolved, there is a risk of inadequate protection of fundamental rights, and the draft's technical quality is questionable. The Supreme Court, the Chancellor of Justice, and the Bar Association have also identified problems with the proposal. The Chamber suggests improving the existing misdemeanor procedure framework instead of creating a new procedure type. The legislative process will continue in 2025.
Success: Consumer Disputes Committee Decisions Will Not Become Binding
In February 2024, the Ministry of Economic Affairs and Communications prepared a draft law amending the Consumer Protection Act, which included changes to how consumer disputes are resolved. For example, the draft proposed making Consumer Disputes Committee decisions binding, enforceable through a bailiff.
We informed the ministry of our opposition to binding decisions, as this could conflict with the Constitution and would not resolve the issue of unfulfilled decisions. Non-compliance primarily occurs with traders facing financial difficulties. The ministry abandoned the proposal to make committee decisions binding.
Chamber Supported Rounding Rules for Small Coin Denominations
The Chamber supported a change requiring traders to round the final price of a shopping basket to the nearest 5 cents in physical sales locations. According to the rounding rules, traders must round the total cost of a cash payment (not individual product prices) up or down to the nearest 5 cents. The amendment came into force on January 1, 2025.
Advertising law needs Amendment
In January 2024, the Ministry of Economic Affairs and Communications drafted an initiative to amend the Advertising Act, including dozens of proposed changes. These addressed the definition and general principles of advertising, as well as specific areas like alcohol, financial services, and other industries. The Chamber submitted its positions on 15 ideas, emphasizing the need to clarify definitions, principles, and restrictions to make compliance easier for businesses and to improve the efficiency of supervisory bodies. Additionally, the law should account for new advertising channels. However, we stressed that over-regulation must be avoided. It will be determined in 2025 to what extent the Advertising Act will be amended.
Chamber's Success: Reduced Capital Requirement for Credit Collection Companies
On July 14, 2024, the Credit Collection and Debt Purchase Act came into effect, regulating the activities of debt collection companies and related entities dealing with credit agreements. Among other things, the new law requires credit collection companies to obtain an operating license from the Financial Supervision Authority and meet a capital requirement of €25,000.
The Chamber made several proposals during the drafting process, some of which were incorporated. For instance, the initial draft required a minimum share or equity capital of €50,000, but this was reduced to €25,000 based on the Chamber's suggestion.
Vehicle Stopping on Sidewalks for Loading Should Remain Permitted
A draft law amending the Traffic Act and Police and Border Guard Act proposed prohibiting stopping vehicles on sidewalks for loading as of early 2025. While ensuring pedestrian safety is essential, the Chamber argued that businesses also need reasonable options for loading goods. Parliament partially accepted the Chamber's proposal and postponed the change by six months to allow businesses and local governments to prepare. The provision allowing vehicle stopping on sidewalks will be removed on July 1, 2025.
Beneficial Ownership Register Must Remain Immediately Accessible
The Ministry of Finance proposed restricting public access to beneficial ownership data and introducing penalties for companies failing to submit this information. The Chamber urged the ministry to reconsider how to ensure immediate access to beneficial ownership data for obligated entities and to evaluate the proportionality of the proposed sanctions.
Alcohol Consumption Reduction Plan Should Avoid Increasing Bureaucracy
In November 2024, the Ministry of Social Affairs published a development plan for reducing alcohol consumption from 2025 to 2035. Proposed measures include indexing alcohol excise duties to inflation and restricting or banning online alcohol sales. While the Chamber supports the plan's goals, we highlighted that the proposed measures should genuinely help achieve these goals rather than merely adding bureaucratic burdens.
Concerns Identified in Draft Gender Equality and Equal Opportunities Law
The Ministry of Economic Affairs and Communications drafted a law obligating employers to actively promote gender equality and equal opportunities. The Chamber found the draft problematic as it lacks justification for expanding the law’s scope and leaves the definitions of new protected characteristics unclear. The legislative process will continue in 2025.
Support for Making Investment Account Rules More Flexible
The Ministry of Finance proposed amendments to the Income Tax Act and Pension Funds Act to make the investment account framework more flexible and better suited to small investors. The Chamber supported these changes, which took effect on December 13, 2024. For instance, individuals can now invest in crowdfunding and cryptocurrencies through an investment account, and accounts can be opened not only at credit institutions but also at payment institutions, e-money institutions, and investment firms.
Private Copying Levy System Needs Modernization
The Chamber highlighted that the private copying levy system needs significant updates, as the current regulation is outdated. Changes are necessary due to evolving consumption habits and technological solutions, such as the increased use of paid streaming services that do not require private copying levies. The Ministry of Justice informed the Chamber that a study on private copying levies will be conducted in 2025, after which decisions on regulatory changes will be made.
Gender Balance in Corporate Boards Requires Further Refinement
The Ministry of Finance proposed amendments to the Securities Market Act, introducing requirements for gender balance in the supervisory and management boards of publicly listed companies. This initiative aims to adopt an EU directive and promote gender equality in Estonia's listed companies. The Chamber noted that the draft requires significant refinement, including clarity on the application and timeline of the provisions, as well as assessing potential conflicts with other laws.
Equal Funding Rules for Public and Private Research Institutions
The Ministry of Education and Research presented a new version of the Research and Development and Innovation Act, which includes updates to the research funding system. Among the updates is the Chamber's earlier proposal to fund private research institutions on the same basis as public research institutions.