First reading of the Draft Act on the Amendment of the Income Tax Act and the Funded Pensions Act (Bill 434 SE)
Session: 15th Riigikogu, 3rd session, plenary sitting
Date: 2024-06-06 07:59
Participating Politicians:
Total Speeches: 8
Membership: 15
Agenda Duration: 7m
AI Summaries: 8/8 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The first reading of Draft Bill 434 concerns the government-initiated amendments to the Income Tax Act and the Mandatory Funded Pensions Act, focusing on updating the regulatory framework for investment accounts. The main objectives are to increase flexibility and take into account the needs of small investors: the list of financial assets eligible for the investment account is expanding, and the account can now be opened not only with a bank but also with an investment firm, a payment institution, and an e-money institution. The list of assets is being expanded to include covered bonds, regulated crowdfunding, and regulated crypto assets. Retroactive provisions are also planned starting from the beginning of 2024, and the provisions related to crypto assets will enter into force on January 1, 2025. The draft bill involves discussion and committee work, a proposal for the plenary session on June 5th, and the conclusion of the first reading, along with deadlines and subsequent agenda items.
Decisions Made 3
Add the draft bill to the plenary session agenda on June 5th.
The first reading is concluded.
Designate the current speaker, Aivar Sõerd (6PpW4rDrTt0), as the representative of the lead committee, and adhere to the established timeline—the deadline for submitting amendments is June 20th at 17:15.
Most Active Speaker
Speaker: Aivar Sõerd; position: other (esteemed member of the Finance Committee and representative of the co-report). His participation is the most active in the current discussions, and he represents the leading committee's procedural cooperation in advancing the bill's proceedings.
Aseesimees Toomas Kivimägi
AI Summary
The speech concerned the first reading in the Riigikogu of the government-initiated Draft Act 434 on amendments to the Income Tax Act and the Funded Pensions Act.
Rahandusminister Mart Võrklaev
AI Summary
The Riigikogu is debating the modernization of investment account rules, which will expand the list of eligible financial assets (to include covered bonds, regulated crowdfunding, and regulated crypto assets). Furthermore, the changes will allow investment accounts to be opened not only at banks but also at investment firms, payment institutions, and e-money institutions. The amendments also permit investment in covered bonds through a pension account, though not in crowdfunding or crypto assets. These changes will take effect partially starting from the beginning of 2024, with the provisions specifically related to crypto assets entering into force on January 1, 2025.
Aseesimees Toomas Kivimägi
AI Summary
The Deputy Chairman thanked the speaker for the report and asked Aivar Sõerd to pose one question.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd asks how the Ministry of Finance assesses the results of the Second Pillar payout, taking into account the number of people who opted out and the approximately 5,000 pension accounts that are now self-investing.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev emphasizes that although the dismantling of the second pillar has largely led to people exiting the system, the first pillar alone does not guarantee retirement income. Therefore, it is sensible to contribute independently to the second or third pillar, where the tax incentive will increase starting from 2025 (4% or 6% into the second pillar and up to 6,000 euros into the third pillar). Furthermore, due to the income tax refund, every euro invested yields an immediate return of about 20%, which provides a compelling reason to think about retirement and start saving.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanked the attendees and noted that there were no further questions, before inviting Aivar Sõerd, the honorable member of the Riigikogu Finance Committee, to deliver the co-report.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Finance Committee discussed the draft bill, listened to the Minister's comprehensive report, and decided to place the draft bill on the plenary session agenda for June 5th, conclude the first reading, and appoint the speaker (myself) as the representative of the lead committee. During the discussion, it was simultaneously acknowledged that crypto assets are now sufficiently regulated through licensed service providers. Furthermore, the committee addressed the issue of separating the pension pillar and investment accounts, the operating license for small funds, and the deadline for submitting amendments, which is ten working days.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi declared the agenda exhausted, noting that several draft bills lacked a rapporteur in the chamber, which prevented discussion from commencing, and subsequently adjourned the session.