First reading of the Draft Resolution of the Riigikogu "Making a Proposal to the Government of the Republic for Lowering the Value-Added Tax on Domestic Fruits and Vegetables to 5 Percent" (406 OE)
Session: 15th Riigikogu, 3rd session, plenary session
Date: 2024-05-29 21:52
Total Speeches: 62
Membership: 15
Agenda Duration: 39m
AI Summaries: 62/62 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The next item on the agenda addressed the Centre Party faction's draft resolution of the Riigikogu, Draft No. 406, titled "Proposal to the Government of the Republic to reduce the VAT on domestic fruits and vegetables to 5 percent." Riigikogu member Aleksandr Tšaplõgin was appointed as the rapporteur. The aim of the draft was to promote a healthy lifestyle and strengthen the position of local producers by offering a reduced VAT rate for local fruits and vegetables. Concurrently, several alternatives were presented, such as excise duties and tax incentives, which could potentially cover the budget deficit and influence consumption. Furthermore, the discussion highlighted the experiences of Latvia and Lithuania. During the debate, questions were raised regarding the source of funding, the impact on consumers, and the socio-economic consequences. Various viewpoints were collected from both the coalition and the opposition.
Decisions Made 1
Bill 406 has been rejected. Voting results: 12 in favor, 2 against, 2 abstentions.
Most Active Speaker
The most active representative was Marek Reinaas, a member of the Finance Committee. His role was to act as the committee's representative during negotiations, and he presented the bill's perspective on issues related to forecasts and discussions. Position: other.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar is today introducing the fifth item on the agenda and inviting Aleksandr Tšaplõgin to serve as the rapporteur. Tšaplõgin will present the Centre Party faction's draft bill 406, which proposes lowering the VAT on domestic fruits and vegetables to 5 percent.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The Centre Party faction has presented several alternatives to the sugar tax, including lowering the VAT on local fruits and vegetables to 5% and refraining from penalizing soft drink consumers, in order to promote a healthy lifestyle and support Estonian producers.
Esimees Lauri Hussar
AI Summary
The Chairman thanked his colleague and invited Aleksei Yevgrafov to answer the questions.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksei Yevgrafov points out that the prime minister constantly claims the state budget is empty, and asks what the source of funding is for Aleksander's proposal.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The Centre Faction has already submitted proposals concerning a special tax on banks, progressive income tax, and the reduction of bureaucracy.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar called Andrei Korobeinik.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik thanked the presenter, stating that the proposal was excellent and that he definitely intended to support it. However, for the sake of clarity, he inquired which specific fruits and vegetables were covered by the proposal.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The address emphasizes that the focus will be exclusively on local products while simultaneously supporting local producers.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asks Vadim Belobrovtsev to come.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Belobrovtsev said that the draft legislation is reasonable and necessary and would be beneficial, but he questions whether it should be extended to all food products, since the reduced VAT rate could apply not only to vegetables and fruits, but to all groceries.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He thanked them and pointed out that the idea was sound, but even though the Center Party group had already proposed it, it failed to gain the coalition's support.
Esimees Lauri Hussar
AI Summary
The Chairman thanks the rapporteur and announces that there are no questions, and then asks Marek Reinaas, a member of the Riigikogu Finance Committee, to introduce the discussion that took place in the Riigikogu Finance Committee.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The Riigikogu Finance Committee debated the proposal to reduce the value-added tax (VAT) on domestic fruits and vegetables to 5%. During the discussion, Andrei Korobeinik and Jürgen Ligi highlighted both the economic and philosophical aspects of the change. The committee ultimately reached a consensus that lower-income individuals purchase fewer fruits and vegetables. They also reviewed the experiences of Latvia and Lithuania, noting that Latvia had discontinued its 5% VAT rate, replacing it with a 12% VAT on local produce. The committee voted to place the draft bill on the plenary session agenda for May 28 and designated Marek Reinaas as the lead committee member.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks the speaker for the comprehensive report, announces that there are questions for the respected presenter, and invites Andrei Korobeinik to take the floor.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik acknowledged the presentation, stating that it was very good and its content was much more substantive than the typical short overview or ideological lecture.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The speech was simply a thank you.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
I would like to ask for clarification: You stated that not all members of the committee—for example, our good colleague Jürgen—supported this draft bill on ideological grounds; could you remind us what the reasons were why vegetables and fruits did not find favor with some committee members?
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Reinaas argued that any reduction in VAT or the creation of special VAT exemptions must take into account the budget, consumption, and its socio-economic impact. He criticized the draft bill for failing to consider these effects, noting that in a capitalist market economy, the price is ultimately determined by supply and demand, and not solely by the tax imposed on fruits and vegetables.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Vadim Belobrovtsev to take the floor.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker thanks the audience and asks whether the VAT on other goods in Latvia is higher than 12%, and whether the VAT on fruits and vegetables has been lowered compared to the standard rate, or if 12% is simply the standard tax rate in Latvia that applies to all goods?
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Latvia began abandoning the 5% reduced VAT rate applied to fruits and vegetables. The Ministry of Agriculture commented on this, stating that the 5% rate was excellent and had a tremendously positive impact on public health and consumption, while the Ministry of Finance deemed it pointless and a waste of money. Ultimately, the coalition decided to raise the rate from 5% to 12%, rather than 21%.
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar called Anastassia Kovalenko-Kõlvart to the stage.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
The report highlights that during the COVID period in Latvia, VAT was initially lowered to 5% for local businesses, and subsequently raised to 12% as a special tax—a rate that contrasts sharply with our 22%. Furthermore, the state still aims to support a healthy lifestyle and local entrepreneurship, all while referencing a very interesting philosophical debate between Korobeinik and Ligi.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
In his speech, Marek Reinaas offered just one verbal expression: "Oli."
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
He/She wants to hear why poorer people purchase fewer fruits and vegetables, and what the Commission plans to do so that less affluent individuals also consume more healthy foods.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
I must confess that I should have spent more time focusing on the subject matter and generalized less. I also brought up the point that the poor buy fewer fruits and vegetables because of the higher prices, and consequently, they pay less VAT on those items. The commission failed to discuss this, and I simply connected these points directly, which led me to believe that the deeply intellectual discussion had reached its conclusion.
Esimees Lauri Hussar
AI Summary
The Chairman called upon Siim Pohlak to speak.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Siim Pohlak asserts that the adoption of the draft bill strengthens local Estonian berry, vegetable, and fruit cultivation, thereby bolstering food security and the security of the entire state, and he challenges the opposition to explain how this could possibly undermine food security.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Security is very important, but during the discussion of this specific issue in the Commission, security aspects were not raised, and as a representative of the Commission, I cannot say that the Commission holds that view.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats claims that the opposition does not understand the importance of the bill, arguing that Estonia, while governed by the Reform and Social Democratic parties, has only brought poverty to the country. He noted that approximately 350,000 people are living in poverty and stated that raising taxes, including the value-added tax (VAT), has put Estonia at the forefront of Europe. He then questions how lower-income people will cope with these higher taxes.
Esimees Lauri Hussar
AI Summary
The Chairman calls upon Lauri Laats to speak.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Reinaas said that he is primarily describing the discussion that took place in the committee, where they talked about how less affluent people can afford fewer fruits and vegetables and how they cope with that, but that was not the topic of the committee's discussion.
Esimees Lauri Hussar
AI Summary
The Chairman invites Aleksei Yevgrafov to the stage to present.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He thanks them and addresses the esteemed server, asking what their personal opinion is and how they manage to handle it.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He decides not to express his opinion.
AI Summary
Rene Kokk said that the aspect of food security was not under discussion, and he recommended seeking opinions from other committees (the National Defence, Rural Affairs, or Environment Committee) in order to preserve domestic food production and ensure high-quality domestic produce for the people.
Esimees Lauri Hussar
AI Summary
The Chairman called Rene Kokk to the podium.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
I very much hope that the Rural Affairs Committee addresses Estonian food security at every session, and that opinions on the draft bill are also sought from the defense, agriculture, and other committees, because the discussion held in the Finance Committee was brief and only covered lowering the VAT on fruits and vegetables to 5%.
Esimees Lauri Hussar
AI Summary
Chairman Hussar thanked the rapporteur, opened the debate, and informed the chamber that representatives of the parliamentary groups and committees were welcome to take the floor. He noted that two members of the Center Faction had requested speaking time, and subsequently invited Lauri Laats, representing the Riigikogu Center Faction, to approach the rostrum.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats submitted the Center Party's draft bill, which seeks to lower the VAT on fruits and vegetables to 5% in order to mitigate rising food costs and poverty and improve people's lives, while simultaneously criticizing the coalition and the Finance Committee for their neglect regarding the welfare of the people.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar requests three minutes of extra time.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats claims that the share of consumption taxes in Estonia is about 42%, which heavily burdens the poorest—around 350,000 people—and therefore calls for supporting the Centre Party faction's proposal to establish different VAT levels and lower the VAT on food.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar stated that the representative of the Center faction has already taken the floor, and although Andrei Korobeinik claimed that he is a representative of the committee, his authorization is missing from the protocol. Consequently, he could not be invited, and if Jürgen Ligi wishes to speak, he must be invited to the Riigikogu podium.
Jürgen Ligi
AI Summary
Jürgen Ligi claims that poverty cannot be alleviated through tax exemptions, and that lowering taxes reduces the state's capacity to provide assistance; he calls the VAT exceptions the result of lobbying and invites the Centre Party to debate seriously and not sit alone in a grey hall.
Esimees Lauri Hussar
AI Summary
The Chairman thanks the assembly and announces that although there is a desire for a rebuttal, they will first begin with Siim Pohlak's address, and the opportunity for a counter-speech will be granted thereafter.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Siim Pohlak stressed that reducing the VAT on groceries to 5% is vital for easing the cost of living, and EKRE supports domestic food production and lowering the VAT specifically on fruits and vegetables.
Esimees Lauri Hussar
AI Summary
The Chairman thanks the colleague and announces that there are no further requests to speak, but one on-site right of reply has been registered—Lauri Laats, please.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats responded to Jürgen Ligi’s remarks, stating that the Finance Committee does not discuss how people are making ends meet. He emphasized that there are also deputies in the hall who think about the public and strive to discuss issues that are important to the people.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the participants, declared the discussions closed, and noted that no amendments to the draft bill had been submitted prior to the final vote. He then invited Andrei Korobeinik to ask a question regarding the procedure for conducting the session.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
He asks under which section it is claimed that an entry must be made in the minutes for the committee to appoint a co-rapporteur, and he examines the yellow book, doubting whether it can truly be quoted from memory.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar explained the Riigikogu's long-standing practice, according to which the committee also discusses the issue if a committee representative participates in negotiations. He noted that this specific information was not found in the protocol, and Vadim Belobrovtsev inquired about the procedure for conducting the session.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev said that it was a pity that Jürgen Ligi came to the rostrum and wasted people's time. He then asked whether the session chairman should call to order such a speaker who speaks in a patronizing tone and does not focus on the draft bill or what happened in the committee, and tell him that he shouldn't have come to the podium.
Esimees Lauri Hussar
AI Summary
He said the Chair would not intervene during the negotiations as long as the discussion remained on topic and focused primarily on the proposal, and then he raised a procedural question.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
He/She recalls a long tradition where speaking on behalf of the committee is not always recorded in the protocol, and asks whether his/her refusal is linked to his/her position in the opposition, or if it is part of a broader trend where amendments are grouped together, recesses are denied, and parliamentary democracy is changing.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar emphasized that anyone speaking on behalf of a committee must have a very clear mandate from that committee, noting that this is the established practice followed in the Riigikogu. He added that Annely Akkermann also has a question concerning the procedure for conducting the sitting.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann noted that the Finance Committee had appointed the lead rapporteur, but the granting of mandates for representation in negotiations was not discussed. Furthermore, as Chair of the Finance Committee, she is not authorized in the chamber to represent the committee in negotiations.
Esimees Lauri Hussar
AI Summary
The Chairman thanks [the speaker], noting that while it was not strictly a procedural question, it did bring clarity, and tells Andrei Korobeinik that this is truly the very last time; next, we will address the minutes of the session and proceed to the final vote.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik asks the presiding officer if this is the last time he will be granted the floor, or if he won't be allowed to speak at all during the next three years, noting that this is his first question.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar says, "No, the answer is..." and leaves the answer unexplained.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
He/She asks about the format, specifically whether there needs to be a discussion regarding the limits of speaking on behalf of the commission, and whether the vote must be consensus-based, and requests that I/we share my/our internal perspective.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar closed the debate, emphasized the protocol for the committee’s representation during negotiations, and submitted the Riigikogu draft resolution—aimed at lowering the VAT on domestic fruits and vegetables to 5 percent—for a final vote.
Esimees Lauri Hussar
AI Summary
Twelve voted in favor of the proposal, two voted against, and two abstained, consequently, draft bill 406 has been rejected.