Chief negotiator believes EU will grant Estonia transition period for tax-free trade

Estonia's chief negotiator in accession talks with the European Union, Alar Streimann, believes Estonia will manage to achieve a transition period for tax-free trade. Streimann told tax-free trade with other taxation issues and energy will be in the focus at the fall talks. According to Streimann Estonia and the EU will probably reach agreement on a transition period for excise taxes. In his opinion, a transition period for value-added tax on heating and retention of a minimum for taxable turnover at its present level are also probable. There remains the issue of tax-free trade on ships and here Estonia intends to make out its case very clearly and if necessary arrange for example seminars and conferences for this purpose, the negotiator said. Streimann said he fears that EU member nations are not very keen on a swift solution as regards transition periods for tax-free trade and clarity on the issue may not come until the final phase of the talks. He wouldn't venture a guess at how soon the problem will be resolved and how big is the probability of the EU granting Estonia a transition period. According to the new positions on taxation introduced by Estonia to the EU early in the summer, the country seeks a transition period of six and a half years for tax-free trade.