Skip to main content

Estonia: 2026 excise duty increase on energy carriers cancelled; other energy-related tax developments

The changes aim to mitigate high energy costs and support energy-intensive companies.

may 7, 2026

The Estonian Parliament (Riigikogu) recently adopted amendments to the Alcohol, Tobacco, Fuel, and Electricity Excise Act, which repeal the increase in excise duties on energy products that was planned for May 1, 2026.

The repeal, effective May 1, 2026, affects motor fuels, fuel oils, natural gas, and electricity, causing the 2025 rates to remain in effect for 2026. However, the excise duty increases planned for 2027 will become effective at the rates and by the deadlines set earlier.

Other amendments, which apply retroactively from January 1, 2026, include:

  • New discount system on renewable energy fees for large, energy-intensive electricity consumers, provided they meet certain energy efficiency requirements
  • Change to allow companies with intensive gas consumption that use battery storage solutions to qualify for a preferential natural gas excise duty rate
  • Income tax exemption for compensation received from participation in electricity balancing markets

Read a May 2026 report prepared by the KPMG member firm in Estonia

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.
All fields with an asterisk (*) are required.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline