The Estonian government is rushing to hike excavation fees to improve the budgetary revenue intake by €34 million by 2015.
The Ministry of the Environment confirmed in September 2012 that excavation fees are fixed through to 2015 by the government decision from 2009, although the Ministry consented to the unexpected rise in excavation fees, approved by the government, to take effect as of 1 April,2013.
Excavating companies (peat, sand, gravel, and other) claim the unexpected rise in fees is a major setback in competitiveness.
The Estonian Peat Producers Association says domestic peat producers compete with Latvian producers in the export markets in Germany, Belgium, and Holland. The mineral resources fees charged on export peat levied in Estonia surpass four-fold the peat export charge in Latvia.
Projected rise of mineral resources excavation fee (September 2012) by 2015: peat (fee at present €1.15-1.4/tonnes) +73%; oil shale +82% (€1.32/tonnes); limestone +81% (€0.83-2.35/m³); sand +86% (€0.28-1.48/m³); gravel +72% (0.57-1.87/m³).
