Tax revenue increased compared with the same period last year due to higher receipts from value added tax, social tax, fuel excise duty, and corporate income tax.
Tax receipts in the first two months of 2025 and 2026
VAT receipts in February amounted to over €326 million, which is nearly €50 million more than in February last year. The largest contributions to revenue came from the energy sector, retail trade, and specialised construction activities.
Raili Roosimaa, Deputy Director General for Taxes at the Estonian Tax and Customs Board, said that the energy sector continued to have the greatest impact on VAT revenue. “Electricity and gas consumption in February was significantly higher than a year ago. Prices were up this year, which also led to an increase in tax revenue from the energy sector. In retail trade, revenue was boosted primarily by a clear recovery in motor vehicle sales. Sales volumes in this sector were significantly higher than in February last year,” Roosimaa noted.
Personal income tax revenue in February amounted to €241.7 million, which is €14.6 million less than in the same month last year. The decline was due to a change in the calculation of basic exemption at the beginning of 2026. The wage fund grew by 4.8%, increasing social tax revenue to €431.4 million – up by approximately €19 million from February last year.
Corporate income tax revenue in February amounted to €43.7 million, which is over €9 million more than a year ago. The growth was mainly due to an increase in income tax revenue from dividends of the private sector. The greatest contributions were made by companies engaged in professional, scientific and technical activities, the information and communication sector, and companies involved in trade and energy.w
Fuel excise duty revenue in February totalled nearly €51 million, which is €11.4 million more than a year earlier. According to Raili Roosimaa, the growth was mainly driven by increased demand, which also led to an increase in the fuel volumes released for consumption. “Year on year, the volumes of petrol, diesel fuel, diesel carrying a fiscal marker, and fuel oil released for consumption increased in both January and February. Total consumption in February was up by 15.1 million litres, which also boosted excise duty revenue, especially for petrol and diesel fuel,” Roosimaa stated.
In February, the greatest year-on-year increase in retail sales of both petrol and diesel fuel was seen in Harju, Pärnu, and Tartu counties. Data on the retail sale of fuel are submitted to the Tax and Customs Board twice a month, which allows the agency to monitor the market situation in two-week intervals.
Revenue from alcohol and tobacco excise duties was down from last year's February. The lower revenue from both excise duties was due to stockpiling of excise goods in December, which was even greater than a year ago. Revenue from tobacco excise duty was lower than in February last year due to a decrease in the quantities of cigarettes released for consumption. Revenue from other and alternative tobacco products, however, remained at a similar level as last year.
The revenue from tobacco excise duty should be rising in the coming months, a trend already evident in preliminary March data. Tobacco products subject to a lower excise duty rate were stockpiled in December for only three months – this is influenced by the sales restriction that took effect on 1 April, which generally prohibits the sale of tobacco products subject to a lower duty rate.
Alcohol excise duty revenue in February was just over €10 million, which is approximately €647,000 less than a year ago. The decline was influenced by the decrease in the quantities of spirits and beer released for consumption – down by about 12%. This was also due to earlier stockpiling of goods. In December 2025, both spirits and beer were stockpiled in greater quantities than a year earlier, which is why the release for consumption has decreased in the first months of 2026 and excise revenue is lower. Since sales restrictions do not apply to alcohol, stockpiling in December affects tax revenue over a longer period than in the case of tobacco products.
Tax receipts in February 2026 compared with February 2025 for selected taxes
As at 1 March 2026, total tax arrears amounted to €356.4 million, of which €55.6 million consisted of deferred tax arrears.
In February, tax arrears were mainly concentrated in four sectors – construction, wholesale and retail trade, manufacturing, and transportation and storage. These sectors together accounted for approximately 63% of total tax arrears. A large portion of the arrears in these sectors was related to VAT, special income tax, and labour taxes.
At the end of February, there were 54,500 persons with tax arrears. The number of debtors decreased by approximately 5,500 during February, mainly due to the payment of motor vehicle tax. In this tax category, the number of debtors was down by about 5,300, resulting in a reduction of the debt balance by approximately €413,000.
Tax debt balance by sector as at 1 March 2026
More information on the rescheduling of tax arrears for private customers and companies is available on the website of the Tax and Customs Board. Instructions and FAQs can also be accessed by logging into the e-services environment e-MTA and selecting “Payments of tax liabilities in instalments” in the Help center section.
Overview of tax receipts in Estonian is available on the website of the Tax and Customs Board.
