First reading of the Draft Resolution of the Riigikogu "Making a Proposal to the Government of the Republic for the Implementation of the Digital Services Tax in Estonia" (408 OE)
Session: 15th Riigikogu, 3rd session, plenary session
Date: 2024-05-29 22:31
Participating Politicians:
Total Speeches: 36
Membership: 15
Agenda Duration: 39m
AI Summaries: 36/36 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The item on the agenda addressed the draft resolution of the Riigikogu submitted by the Estonian Centre Party faction, titled "Proposal to the Government of the Republic for the implementation of a digital services tax in Estonia." The initiator of the draft, Andrei Korobeinik (Centre Party), emphasized that the digital tax is necessary because large global technology firms (e.g., Facebook, Google) earn significant profits in Estonia from the sale of advertising and services, transferring that profit out of the country without paying taxes in Estonia. Korobeinik offered the digital tax (which would bring an estimated 7 million euros annually into the state budget) as a fairer alternative to the government's plans to tax poorer population groups, such as pensioners. He noted that since international solutions (OECD, EU) have stalled, Estonia should follow the example of France and impose the tax unilaterally. Jürgen Ligi (Reform Party), representing the Finance Committee, criticized the initiator of the draft for insufficient handling of the topic and failing to clarify the technical details of the tax. Ligi confirmed that there was no ideological disagreement within the committee, but Estonia's position is not to impose a tax that is difficult to manage alone on a small market, but rather to wait for an international solution. A sharp procedural dispute followed between Korobeinik and Ligi regarding the content and tone of the committee's report. During the negotiations, the draft was supported by EKRE (Siim Pohlak) and the Centre Party (Lauri Laats), who accused the government of protecting the interests of large corporations. In the final vote, the draft was rejected.
Decisions Made 1
Bill 408 was rejected in the final vote. Thirteen members of the Riigikogu voted in favor.
Most Active Speaker
The most active speaker was the initiator of the bill, Andrei Korobeinik (Centre Party), who presented the proposal, answered questions, and participated in a sharp procedural dispute with Jürgen Ligi, the representative of the Finance Committee.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar introduces today's sixth agenda item, which is the draft resolution of the Riigikogu submitted by the Estonian Centre Party faction concerning the implementation of the digital services tax in Estonia, and invites Riigikogu member Andrei Korobeinik to serve as the rapporteur.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
In his presentation, Andrei Korobeinik highlighted the digital tax as a fairer way to collect approximately 7 million euros in additional monthly revenue from digital services consumed in Estonia and avoid burdening the poor, while simultaneously taking into account discussions at the OECD and European Union level.
Esimees Lauri Hussar
AI Summary
The presenter is thanked, questions are asked, and Anastassia Kovalenko-Kõlvart is invited to answer.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker stressed that taxing the digital economy is unavoidable, pointed to the example of France, and criticized the government’s plan to tax pensioners at the same time that taxes remain unapplied to major platforms like Facebook, Google, and Amazon, leaving media companies in an unequal position.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Korobeinik argues that the government’s plan to take money from the poorest is wrong and that, in Estonia’s interest, the country must set an example by implementing a digital tax, similar to France, and subsequently moving toward a common European Union digital tax, because this would enhance European competitiveness, even though this step is unlikely to materialize in the near future.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar called Aleksei Jevgrafov.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksei Yevgrafov says that the sugar tax and the car tax burden ordinary people, and he is considering a digital tax as an alternative. He also wonders whether in the future money could be taken from entrepreneurs and the wealthy instead of at the expense of the poor.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
In his presentation, Andrei Korobeinik emphasized that the digital tax is effective in terms of revenue collection and easy to manage, but the profits of large corporations are moving abroad. He added that there are alternatives to the car tax, and during a crisis, taxes must not burden the poorer segments of society, because the money should remain within local consumption and contribute to the welfare of pensioners.
Esimees Lauri Hussar
AI Summary
The Chairman called upon Vadim Belobrovtsevi to speak.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev criticizes the government's tax changes, noting they have only been tax hikes, and points out that the coalition does not support proposals aimed at increasing the state budget, such as a bank tax or a digital tax.
Esimees Lauri Hussar
AI Summary
The message says it's your time and you need to act.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
This is actually an effective measure for bringing money into the state budget without fleecing the poor.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Speaker Andrei Korobeinik criticized the unequal treatment of pensioners, pointing out that Estonia ranks last in the European Union for economic growth and is the only country in Europe where the economy is declining, and mentioned the Reform Party's promise of a tax cut for high-earners that is not being directed toward pensioners.
Esimees Lauri Hussar
AI Summary
The Chairman thanked the rapporteur, announced that there were no further questions, and invited Jürgen Ligi, a member of the Riigikogu Finance Committee, to introduce the debate from the Riigikogu rostrum.
Jürgen Ligi
AI Summary
Jürgen Ligi stated that the debate over the digital tax bill in the Finance Committee was substantively vague, and technical specifics were left unclarified. The committee proceeded to send the bill to the final vote. Estonia's current position is that the country will not attempt to implement this alone, given that it is a tax that is difficult to administer and likely crosses borders, and is therefore being resolved in cooperation with the OECD, the European Union, and the UN, if necessary.
Esimees Lauri Hussar
AI Summary
The speaker thanks the audience, invites questions, and asks Kalle Grünthal to take the floor.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalle Grünthal expressed concern over the bizarre decisions and the incomprehensibility of the draft legislation coming from the Finance Committee, noting that these could be detrimental to the state. He recommended replacing the members with more competent individuals so that they would be able to understand the submitted bills without the assistance of civil servants.
Jürgen Ligi
AI Summary
Jürgen Ligi criticizes the lack of clarity in the digital tax bill, emphasizes the official's role in international discussion and harmonization, and notes that, as a small state, Estonia should not implement a tax that is difficult to collect, because France's experiences do not serve as a model for us.
Esimees Lauri Hussar
AI Summary
The Chairman called Andrei Korobeinik to the stage.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
He/She expresses concern regarding a specific finance committee member's misunderstanding recorded in the minutes and requests clarification on whether something remained unclear, whether this issue affects only that member or others as well, and why it was not reflected in the minutes, given that clarity is essential for decision-making.
Jürgen Ligi
AI Summary
Jürgen Ligi notes that the Riigikogu is a forum for debate, and when the draft legislation was presented, the presenter lacked conviction. Furthermore, the answers were merely read off the screen by an official, and regarding this novel tax, one would have expected a much more thorough technical and political explanation.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that one oral question could be asked of each presenter, and called upon Anastassia Kovalenko-Kõlvart to ask her question.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
The presenter noted that the Center Party's initiative seemed pointless to him, but highlighted that comprehensive answers had been provided to the questions raised in the Finance Committee. He then inquired why the official allegedly responded via screen when he was physically present—suggesting it might have been a confusion with another draft bill.
Jürgen Ligi
AI Summary
Jürgen Ligi labels the Centre Party's initiatives as destructive, ill-considered, and superficial "junk bills," stressing that any response must detail the difficulties and procedure of implementation, and that the committee's report should not be belittled.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks the rapporteur, announces that there are no further questions, and before opening the debate, he poses two questions regarding the procedure for conducting the sitting and addresses Vadim Belobrovtsev.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
He asks whether the Chair of the session should call the presenter to order if they use a patronizing tone while delivering the report of the commission's representative.
Esimees Lauri Hussar
AI Summary
Lauri Hussar emphasized that one must be respectful towards all parties, and that this would help foster the debate culture, adding that Andrei Korobeinik had presented a question concerning the procedure for conducting the session.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik expressed concern about the culture of debate damaging the reputation of the Riigikogu, and pointed out that sometimes speakers represent the committee's view, accuse officials, and claim that initiatives are wrong, while referencing the role of the Riigikogu Speaker and noting that such statements do not bring about anything positive.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar states that he did not attend the committee meeting and does not know exactly what transpired there, but stresses that clear rules apply to the report, and that the presenter was able to introduce the discussion via the submission of the official protocol, also highlighting Anastassia Kovalenko-Kõlvart's question concerning the procedure for holding the session.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
He asks whether the committee's rapporteur has the right to give an assessment of the party's draft bill before the vote, given that the committee only reached a technical consensus decision and the bill has not yet been voted on, either for or against, by the full assembly.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offered his thanks, stating that he had heard a presentation close to the ideal, citing Marek Reinaas as an example, and expressed hope that the debate could continue in this manner in the future. He then declared the discussions open, emphasizing that representatives of factions and committees were permitted to take the floor, and invited Siim Pohlak to speak first on behalf of the EKRE faction.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Siim Pohlak accuses the Reform Party government of imposing tax hikes that burden Estonian citizens and local entrepreneurs, while large international corporations and banks generate revenue exempt from advertising tax. He further emphasizes the necessity of a digital tax and the protection of the interests of domestic businesses and the populace.
Esimees Lauri Hussar
AI Summary
The Chairman announces that Lauri Laats will be speaking on behalf of the Estonian Centre Party faction, and he has finally arrived.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats explained that the Centre Party's draft bill would require international platforms such as Facebook, Google, YouTube, and Instagram to pay taxes to the Estonian state, which would replenish the state treasury, as a large portion of the advertising revenue currently remains abroad.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar concluded the debate. No amendments were submitted, and he is now sending the draft Riigikogu resolution, proposed by the Estonian Centre Party faction, concerning the implementation of the digital services tax in Estonia, to the final vote.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that Bill 408 received 13 votes in favor, there were no abstentions or votes against, and it was rejected.