Public Administration in Post-Communist Countries

Public Administration Developments and Practices in Estonia  ◾  181

used for business purposes (investments) should not be taxed annually. Enterprises have the abil-

ity to save profits in special accounts to be used for further investments. In 2003, the government

decided to reduce the personal income tax from 26% to 18% (by 1% per year). e reduction of

the personal income tax was halted in 2009 because of the economic recession. A customs tax was

established after Estonia’s entrance into the EU. Some EU states are displeased with the liberal tax

policy in Estonia. Economic crises in Greece and Ireland have led to serious consideration of t