otsemaksed

Otsemaksed is a term used in Estonian public finance to denote taxes that are paid directly to the state by individuals and businesses, as opposed to taxes collected indirectly through goods and services. The concept covers taxes that are based on the taxpayer’s ability to pay, such as income or wealth, rather than taxes collected through consumption.

Etymology and usage: The word is formed from otse meaning direct and maks meaning tax, with the plural suffix -ed. It appears in some government reports, policy papers, and academic discussions about the tax system, but is not as common in everyday speech, where specific direct taxes such as tulumaks (income tax), kinnisvaramaks (property tax), and ettevõtte tulumaks (corporate income tax) are named.

Scope and examples: Otsemaksed typically include taxes levied directly on individuals or legal entities, including personal income tax and property tax, as well as corporate income tax. They are distinguished from kaudsed maksud (indirect taxes), which are collected at points of sale or production, such as käibemaks (VAT) and various excise duties.

Legal and policy context: In public finance discourse, otsemaksed are a central component of the tax mix and are governed by Estonian tax law and policy documents, with administration handled by the Tax and Customs Board (Maksu- ja Tolliamet). Debates about tax reform often address the balance between otsemaksed and kaudsed maksud to influence equity and economic efficiency.