Third reading of the Bill on Amendments to the Income Tax Act (416 SE)
Session: 15th Riigikogu, third session, plenary sitting
Date: 2024-06-04 13:21
Participating Politicians:
Total Speeches: 24
Membership: 15
Agenda Duration: 28m
AI Summaries: 24/24 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
Within the framework of the agenda item, the third reading and final vote of Bill 416, initiated by the Government of the Republic concerning the amendment of the Income Tax Act, took place. The objective of the bill was to tax the portion of the pension exceeding the average pension, which sparked an extremely sharp debate in the Riigikogu. Opposition parliamentary groups (Centre Party, EKRE, Isamaa) expressed strong opposition, accusing the coalition of breaking election promises and undermining the state's credibility. Andrei Korobeinik (Centre Party) and Arvo Aller (EKRE) emphasized that the bill targets the poorest segments of the population, especially pensioners, while the government refuses to tax the excessive profits of banks. Helir-Valdor Seeder (Isamaa) highlighted that the coalition agreement had clearly promised to keep the average old-age pension income tax-free, calling the government's action a "brutal cut" at the expense of families with children and pensioners.
Õnne Pillak (Reform Party), speaking on behalf of the coalition, defended the bill, refuting claims of pension cuts and highlighting the substantial pension increases of recent years. She admitted that freezing the income tax-free minimum is not ideal but considered it a necessary step for organizing state finances and ensuring future pension growth. The debate concluded with mutual accusations of lying and procedural questions. Bill 416 was adopted in the final vote with 47 votes in favor.
Decisions Made 1
Draft Act 416 on Amendments to the Income Tax Act, initiated by the Government of the Republic, was adopted as law (47 in favor, 22 against, 0 abstentions).
Most Active Speaker
Andrei Korobeinik (Center Party) was active both in the speech opposing the bill and in the subsequent replies, accusing the coalition of lying and increasing pensioner poverty. (Left)
Aseesimees Toomas Kivimägi
AI Summary
The Deputy Speaker, Toomas Kivimägi, opens the deliberations on the third reading of Bill 416 concerning amendments to the Income Tax Act and calls upon Andrei Korobeinik of the Centre Party faction to take the floor.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
The report argues that the tax changes take money from the less affluent, increase poverty among pensioners, and exacerbate Estonia's economic downturn, calling on voters to vote against the Reform Party in the next elections.
Aseesimees Toomas Kivimägi
AI Summary
Arvo Aller represents the EKRE faction and is submitting a request.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller said that EKRE does not support the bill because it takes money out of pensioners’ pockets and increases poverty through tax hikes and other cuts, and he called for a vote against the coalition in the European Parliament elections.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi invites Helir-Valdor Seeder to speak on behalf of the Isamaa faction.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder criticizes the coalition's plan to tax above-average pensions and the making of brutal cuts, reminding them of the coalition agreement's promise to keep the average old-age pension income tax-free. He emphasizes that these cuts have been made at the expense of families with children and pensioners, which creates trust issues concerning the state and its social policy.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi said that three additional minutes were needed for the discussion.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder stressed that the issue is primarily one of trust, not merely monetary policy, and that a government operating on lies is not trustworthy, because Estonia is in an economic crisis that has lasted three years and inflation is the highest in Europe’s recent history. He called on his colleagues to vote against the measure in order not to diminish the authority of the state and the parliament.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi represented the Reform Party faction and made a request to Õnne Pillak.
Õnne Pillak
Profiling Eesti Reformierakonna fraktsioonAI Summary
The core message of the presentation is that the opposition's criticism regarding alleged pension cuts is unfounded. Pensions have actually grown significantly in recent years (the average pension is approximately 774 euros, projected to reach 826 euros next year). Furthermore, various tax exemptions, including the income tax exemption for pensions, boost pensioners' overall income. The speech also stresses the necessity of streamlining public finances and achieving economic growth to ensure that pensions continue their upward trajectory.
Aseesimees Toomas Kivimägi
AI Summary
He announces that the call can continue for another three minutes.
Õnne Pillak
Profiling Eesti Reformierakonna fraktsioonAI Summary
Õnne Pillak emphasized that difficult decisions must be made because, without changes, the budget deficit and debt will grow, and pensions may not increase in the future. However, pensioners do not want cuts; they are asking the state to protect and invest to keep our country and children safe and ensure that war never comes.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi offers his thanks and confirms that there is no further desire for negotiation. Although the floor requests that the Centre Party be mentioned, Helir-Valdor Seeder confirms that he did mention Korobeinik’s name in his address, and Andrei Korobeinik is then invited to respond.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik accused the Reform Party of lying both before and after the elections, criticizing their promises regarding pension hikes and and inflation, and noting that Helir's address didn't put an end to the lying, but rather inspired it to carry on, and he is now awaiting Õnne's comment.
Aseesimees Toomas Kivimägi
AI Summary
He stated that a right of reply was not scheduled, but due to the frequent mention of the Reform Party, Õnne Pillak is nevertheless entitled to give one response.
Õnne Pillak
Profiling Eesti Reformierakonna fraktsioonAI Summary
Õnne Pillak stated briefly that Andrei Korobeinik's response was untrue and the facts presented are false.
Aseesimees Toomas Kivimägi
AI Summary
In the name of democracy, he invites Helle-Moonika Helme to deliver a response address.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme accused the Reform Party of making false promises before the elections, specifically mentioning the pledge for a 400-euro pension hike and the exemption of pensions from income tax, asserting that the entire narrative was untrue.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi declares the negotiations closed, makes one exception, and asks Andrei Korobeinik to present a procedural question.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik asks whether it constitutes a good parliamentary debate if someone simply tells another person they lied, without offering any specifics, and requests that Randpere clarify the Reform Party's stance on such a debate.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi stated that it is impossible to provide detailed reasoning within two minutes. He praised Õnne Pillak’s address and the contributions of others, and expressed a wish to restrict the coalition representative’s ability to receive a counter-reply, whereupon Randpere raised a procedural question.
Valdo Randpere
Profiling Eesti Reformierakonna fraktsioonAI Summary
He recalls that he invited Andrei Korobeinik into politics and regrets it immensely.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi stated that the lead committee will conduct the final vote on Bill 416, and we will now proceed to prepare for the vote, asking colleagues to take their positions and cast their votes.
Aseesimees Toomas Kivimägi
AI Summary
Bill 416 was passed into law: 47 in favor, 22 against, and no abstentions.