Draft Security Tax Act (512 SE) – First Reading
Session: 15th Riigikogu, 4th session, plenary sitting
Date: 2024-10-16 20:04
Participating Politicians:
Total Speeches: 128
Membership: 15
Agenda Duration: 2h 13m
AI Summaries: 128/128 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu began debate on the draft security tax bill initiated by the Republic’s Government, first reading 512. The presenter, Minister of Finance Jürgen Ligi, justified the need for the tax due to the accelerated growth of security expenditures (over 3% of GDP) triggered by Russia's aggressive war and the consequences of eight years of living on borrowed funds. The security tax is temporary (until the end of 2028) and broad-based, consisting of a 2% increase in value-added tax (effective 01.07.2025), a 2% additional component of personal income tax, and a 2% taxation of business profits (both effective 01.01.2026). Ligi emphasized that the revenue collected (forecasted at 2.3 billion euros) would only partially cover the additional security expenditures (3.3 billion plus broad-based security).
The debate was tense and focused on the earmarked nature of the tax. The opposition (Isamaa, EKRE, Keskerakond) accused the government of patching budget deficits under the label of the security tax and covering the Reform Party’s election promises, particularly concerning the exemption from income tax for high earners. Criticism was directed at the increase in consumption taxes and the tax’s negative impact on the economy and the ability of low-income people to cope. Coalition politicians (Eesti 200, SDE) supported the bill, stating that every euro would go towards security and that it is an emergency and earmarked measure necessary to strengthen Estonia's defense capabilities. The opposition made three rejection proposals, which were voted down (19 in favor, 56 against). The first reading of the bill was concluded.
Decisions Made 3
Proposals to reject draft 512 (from Isamaa, EKRE, and the Centre Party) were voted down (19 in favor, 56 against).
Bill 512 has concluded its first reading.
The deadline for submitting amendments was set for October 30th at 5:15 PM.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller moves the Riigikogu to the fifth item on the agenda and announces that the government-initiated draft bill 512 concerning the security tax will proceed to its first reading. The rapporteur for the bill is Minister of Finance Jürgen Ligi.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi is presenting a temporary security tax package that includes a 2% increase in VAT starting July 1, 2025, a 2% personal income tax levy starting January 1, 2026, and a 2% tax on corporate profits starting in 2026. The goal is to cover security expenditures incurred between 2026 and 2028, with the measure scheduled to expire in 2028.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller called upon Aleksandr Tšaplõgin to answer questions.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksandr Tšaplõgin argues that every tax increase negatively impacts the economy, and he questions whether this law could jeopardize our economic security.
Rahandusminister Jürgen Ligi
AI Summary
According to OECD estimates, the impact of taxes on the economy is hierarchical: corporate income tax and labor taxes are the most detrimental, VAT is neutral, and land tax and property tax can be beneficial to the economy.
Aseesimees Arvo Aller
AI Summary
The Chairman invites Aivar Kokk to the podium.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk asks where the approximately 800 million euros per year from the security tax disappears to, if next year the budget only allocates slightly over 70 million for the purchase of ammunition and the State Budget Strategy (RES) years are under 200 million. He questions what is being done with the remaining 600 million, stating that, according to him, this does not constitute a security tax.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that the total volume of security spending has grown, and this spending is not covered by the revenue collected from taxes, because defense expenditures have risen from 2.1% to 3.4%, and broader security costs—including the Border Guard, Kapo (Internal Security Service), and long-range ammunition—are greater than the sum collected through taxes.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invited Rain Epler to take the floor.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler asks the minister to present the revenues for 2025–2028 and their allocations for security, and to show how much goes to security and how much elsewhere, so that the transcript is a simple, verifiable line of numbers.
Rahandusminister Jürgen Ligi
AI Summary
The total defense expenditure amounts to 3,858 million, and this figure already incorporates the 2024 value-added tax (VAT). However, despite the tax increases, they fail to cover the additional security costs or the budget deficit. Therefore, the entire spectrum of spending must be reviewed and financially covered.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Vadim Belobrovtsev to the stage.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev stressed that security is currently paramount and asked how the planned nearly 2.5 billion in additional funds for the budget would genuinely be allocated to security, and not simply used to cover the budget deficit.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi notes that due to the disarray in the budget, healthcare costs are unfunded, and the talk of an additional tax (under the name of a security tax) is intended to gain broader support. However, national security requires sound public finances, and raising taxes is unavoidable for responding to crises—and this initiative is not his own.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller asks Lauri Laats to come forward.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats notes that the objective of the security tax law does not align with the explanatory memorandum, and asks where the approximately 1.8 billion, which is collected from the 2.5 billion total, will go, if only 659 million reaches the Ministry of Defence budget.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi explains that the goal of the security levy is to cover the increase in defense spending, and the extra tax revenue will plug the budget hole, rather than diverting funds elsewhere.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Andrei Korobeinik to the stage.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik asks whether the entire security tax will indeed reach national defense, specifically within Hanno Pevkur’s area of responsibility, and requests confirmation from the floor that the money will not be allocated to broader national defense spending.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi accuses the right-wing of lying and spreading misleading claims regarding the security tax, emphasizing that the security tax is a broad-based levy intended to cover defense expenditures, not a specific Ministry of Defense tax, and asks people to address their questions directly to him, rather than to third parties.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Aivar Kokk to speak.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk asks Jürgen directly whether the security levy was actually created for the purpose of allocating a small portion to national defense costs and a large portion to fulfilling the Reform Party's election promise—that is, providing an income tax exemption for high earners.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stated that defense spending is increasing and projected tax revenue will not cover the additional cost. The spending will not decrease next year; rather, it will grow, and the exact percentage of GDP depends primarily on the timing of procurements.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller calls upon Raimond Kaljulaid to speak.
Raimond Kaljulaid
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Raimond Kaljulaid is asking the Minister of Finance whether Estonia intends to increase financing in light of future NATO expectations and potential additional expenditures, and what Estonia’s official response would be if NATO’s expectations become specific.
Rahandusminister Jürgen Ligi
AI Summary
According to Finance Minister Ligi, Estonia is reliable and a role model within NATO. We fulfill agreements better than others and contribute to strengthening collective defense, rather than focusing solely on the interests of our own country.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller calls upon Anastassia Kovalenko-Kõlvart to speak.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart argues that the solidarity tax should not fall solely upon low-income earners. Instead, banks and tech giants, which have profited at the expense of ordinary people, should also be required to pay, as demonstrated by Lithuania's temporary solidarity tax on banks.
Rahandusminister Jürgen Ligi
AI Summary
The Finance Minister claims that raising the banks' advance corporate tax from 14% to 18%, coupled with extraordinary dividends, burdens their lending capacity and capital base. Furthermore, the example of Hungary illustrates how this type of taxation can lead to the impoverishment of the state.
Aseesimees Arvo Aller
AI Summary
Lauri Laats is invited to the stage at the beginning of the address.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats emphasizes that the burden of consumption taxes in Estonia is extremely high—the overall tax burden stands at 35.8% of GDP, VAT at 9.2% of GDP, and consumption taxes account for 41% of total tax revenue—all figures exceeding the European average. He asks why the 2025 tax increases couldn't be achieved more substantially via a bank tax, rather than forcing the burden onto ordinary citizens.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stated that Estonia's competitiveness relies on its tax system, adding that VAT (Value-Added Tax) is safer and a better way to finance the state than income tax, even though the economic impact of various taxes differs according to OECD research.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller called Andrei Korobeinik to the stage.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Korobeinik's address questions the necessity of implementing a new tax, emphasizing that Estonia emerged from the coronavirus crisis leading the European Union in economic growth and maintaining a low debt burden. He further asks what caused the rapidly deteriorating situation and what was the 'bomb' left by previous governments that detonated during the Reform Party's tenure.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi says that while wages and pensions have actually grown during the economic downturn and employment remains strong, the inertia of spending and the rising debt burden demonstrate how difficult it is to restrict expenditures in a democracy. Therefore, it is better to keep the budget balanced and the rules fixed, rather than relaxing them.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Vadim Belobrovtsev to take the floor.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev criticizes the fact that the recent governments, led by the Reform Party, have promised one thing and delivered quite another, and he claims that the budget holes emerged to cover security costs, and asks how those holes actually came about.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi claims the budget went astray when presentations started showing a structural deficit, and after Jüri Ratas became Prime Minister, it became entirely deficit-focused and ended badly. Consequently, he urges people to rethink their approach and concentrate on the core issues.
Aseesimees Arvo Aller
AI Summary
The speech is merely a request to Varro Vooglaid.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Varro Vooglaid voiced his strong confusion over the use of the money collected from the tax increases, noting that he has heard at least three contradictory answers, and requested a clear, year-by-year breakdown detailing how much money is being collected and how much of it is allocated to national security.
Rahandusminister Jürgen Ligi
AI Summary
Jürgen Ligi stresses that defense spending creates a hole in the state budget and must be covered, and he condemns the attributed statements that he has not made.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invited Rain Epler to take the floor.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler asked the minister for a definitive answer regarding when the temporary security tax will end, and whether he can confirm today that it will indeed remain temporary and not change the way the 2009 VAT increase did, which ultimately became permanent.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi dismissed rumors regarding a temporary increase in VAT in 2009, highlighted the difference between fixed-term and temporary measures, and stated that the decision would be made by the next Riigikogu (Parliament). He added that if expenditures cannot be brought under control, a more regular system should replace the taxation of all revenues or the taxation of discriminatory business practices, and the overall goal is to restore the simplicity and regularity of the tax system by the time the next Riigikogu convenes.
Aseesimees Arvo Aller
AI Summary
The speaker invited Raimond Kaljulaid to come up on stage.
Raimond Kaljulaid
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Raimond Kaljulaid emphasized the need to implement NATO-approved defense plans and, if necessary, increase defense spending up to 5% of GDP, noting actual needs, such as ammunition, and questioned whether Europe is truly in peacetime and what steps we are actually taking.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stated, "Do not attack me with slogans, and use precise language, because although movement is permitted within NATO, we have not undertaken national commitments of 5–6% of GDP. Furthermore, our security depends more on NATO's synchronicity and on other members who must increase their defense spending faster, because the 2% target remains unmet, and collective NATO action must ensure faster expenditure growth across all member states."
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Aleksei Jevgrafov to speak.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksei Yevgrafov criticized the minister's claim that the security tax does not cover necessary defense expenditures, and asked what specific figures should be included in the draft bill to fully guarantee security—for instance, 3% instead of 2%.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that additional costs exceed additional revenues, and the impact of increasing the tax is not as great as believed, and the more detailed figures will be presented in writing.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller invited Varro Vooglaid to speak.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Varro Vooglaid stresses that implementing the tax doesn't seem credible unless it is clearly time-limited and temporary. He then asks what guarantees exist that it will genuinely be temporary and that the tax hikes will be reversed once the term expires.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi emphasized that the tax's validity is tied to the expiration date of the law and is temporary, adding that its extension is a decision for the Riigikogu, not a matter of faith, but a question of democracy and honesty.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller made a request to Mart Helme.
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Mart Helme criticizes the idea of a security tax, pointing to the billions of dollars in aid already given to Ukraine and suggesting it might be merely a political signal. He also took the opportunity to reiterate his long-standing opposition to conscription, stating that he only supports a professional army.
Aseesimees Arvo Aller
AI Summary
The speech clearly states that now is your time.
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Mart Helme notes that previously it was said Estonia was not preparing for war, but now preparations are being made, and he asks how many billions we are now scraping together for defense and security.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stated that Estonia has been one of the largest donors of aid to Ukraine, noting that the assistance has already been largely utilized and the supplies are in place. He emphasized that this was carried out as a security policy decision, which he supported, and at the same time, he called for an end to the quoting of third parties and the maintenance of a persistently dissatisfied attitude.
Aseesimees Arvo Aller
AI Summary
Mart Helme poses a question to the presiding officer of the session.
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Mart Helme raised the question of how many billions from the state budget are spent on defense, arguing that giving away weapons would necessitate buying new ones—exactly like having to buy a new car when you give away the old one.
Aseesimees Arvo Aller
AI Summary
The question was addressed to the chair of the session; the minister could not answer, and although he cited some figures, the scale of the billions was not mentioned, and the numbers merely flashed through his address. Finally, Kalle Grünthal was called upon.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalle Grünthal asks Finance Minister Jürgen Ligi whether the $1 billion healthcare funding, which was signed during the WHO investment round held in Berlin, is linked to a tax.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stated that he did not want to tread even near the boundaries of conspiracy theories. He stressed the existence of the Prime Minister's mandate and the need to account for it in state finances, confirmed that the WHO is not a bogeyman to him, and mentioned that Estonia’s defense expenditures this year amount to roughly 3.4% of GDP (with GDP being about 40 billion). He concluded by adding that this money is collected at one point something [percentage] and that the listeners are not interested in the answer, but merely in posing the question and leveling accusations.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Siim Pohlak to the stage.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Siim Pohlak accuses the minister of demagoguery and calls on him to describe five concrete things that will improve the lives of Estonian people and businesses, both now and under his leadership.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that although the economy has contracted, real wages and real pensions have grown very quickly over the last two years, and Euribor is falling, which improves people's purchasing power. He added that the state is addressing the needs of those requiring assistance through specific allocations, and the average pension will increase to about 814 euros next year, which is good news for him.
Esimees Lauri Hussar
AI Summary
The Chairman asks Jürgen Ligi to raise the microphone slightly so that his voice can be heard better.
Rahandusminister Jürgen Ligi
AI Summary
The Minister of Finance apologizes, saying that his answers may not be understood.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar noted that the sound was now significantly better, and called upon Helir-Valdor Seeder.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder recommended a time-limited, earmarked security tax to cover extraordinary expenses, arguing that this measure would increase transparency and public trust.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stated that the issue of specific-purpose spending and taxation represents a compromise. He emphasized broad-based taxation and low tax rates, and affirmed that the claims being circulated regarding the movement of funds are untrue, and the figures have been clearly presented.
Esimees Lauri Hussar
AI Summary
Chairman Hussar invited Arvo Aller to speak.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
In Arvo Aller’s address, the question is asked regarding who the taxable entity is and which business forms are included—whether that covers sole proprietors, commercial associations, or if only private limited companies and joint-stock companies have been taken into account.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that his goal is to improve political culture, explained the differences in taxation between companies and sole proprietors, and stated that the law was drafted quickly, is not perfect, and that within the three-year term, it will become clear whether costs can be saved or a more consistent solution will be found.
Esimees Lauri Hussar
AI Summary
This is merely a request to invite Kalle Grünthal to speak.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalle Grünthal stresses that the well-being of the populace is essential for national security. He notes that not everyone in Estonia is living well, and against the backdrop of demonstrations and planned strikes, he questions whether people in this country are truly having a good life at all.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi emphasizes that people are highly satisfied with his work, asserts that Estonia is a country that has succeeded far better than the average, and adds that a good life is relative and not everyone can enjoy the same quality of life.
Esimees Lauri Hussar
AI Summary
This is a brief address inviting Rene Kokk to the stage.
AI Summary
Rene Kokk emphasizes that when discussing tax increases, one must not base the decision solely on the balance sheets and income statements of just one or two companies, and he asks whether Läänemets, the leader of the Social Democrats, used those figures to make quick calculations regarding the money that would flow into the state budget.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that his criticism was aimed at the manner in which the questions were posed, not the people themselves. He admitted that there is no perfect option for the tax design, but since companies are made up of people, a consensus has been reached. He added that he prefers a predictable, rules-based system and training courses designed for accountants.
Esimees Lauri Hussar
AI Summary
The Chairman calls upon Siim Pohlak to speak.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
He asks whether the definition of business entities in this law also includes sole proprietors (FIEs) or not.
Rahandusminister Jürgen Ligi
AI Summary
Jürgen Ligi said that a FIE (Sole Proprietor) is a self-employed natural person, not a company or entity, and their taxation is handled differently, whereas the general term "company" always refers to legal persons such as a joint-stock company or a private limited company.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Evelin Poolamets to the stage.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Evelin Poolamets notes that the security tax is paid by resident individuals, and asks whether temporary agency workers should not also be required to pay the same tax.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that the company engaged in rental services likely pays taxes. He wants to know the specifics of their accounting and suspects that the rental cost might be categorized as a separate expense—specifically, labor leasing—but he will verify the matter.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets raises a specific question: it is not entirely clear who the taxpayers are, whether sole proprietors are clearly specified, and whether they are considered taxpayers under the terms of this law.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invited Anti Poolamets to take the floor.
Rahandusminister Jürgen Ligi
AI Summary
Jürgen Ligi pointed out that a sole proprietor (FIE) is a natural person, and the tax is levied according to the tax rules applicable to natural persons, and even on income from the business account, if anything is paid out from it.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asks to give the floor to Helle-Moonika Helme.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi notes that perhaps the payment is not necessary, promises to verify the matter, and apologizes.
Esimees Lauri Hussar
AI Summary
The Chairman thanks and calls upon Helle-Moonika Helme.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme is criticizing both the name and the discussion surrounding the security levy, pointing out that while 1.6 billion is being talked about, a significant portion of that money won't go toward defense, and the funds might ultimately be diverted elsewhere.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi called for a genuine dialogue, requesting that people stop characterizing others and presenting false claims, and instead ask questions in a manner that makes it clear to everyone that the objective is to receive a response.
Esimees Lauri Hussar
AI Summary
The Chair thanks the Minister and asks Maris Lauri, a member of the Riigikogu Finance Committee, to introduce the discussion held in the Riigikogu Finance Committee.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Finance Committee, led by Maris Lauri, discussed the draft bill during an extraordinary session, explaining that income for private individuals will be taxed starting from the first euro, and interest will also be taxed; state benefits and pensions are not taxable, and foundations are not subject to taxation. The committee decided to place the draft bill on the plenary session agenda for October 16th and to collect feedback until October 28th.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks the presenter, notes that there are questions, and invites Evelin Poolamets to ask them.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Evelin Poolamets stated that the minister was unable to answer questions regarding agency labor, and she asked whether the committee had discussed how and if agency work would be taxed.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
The specific issue was not under discussion, but if the hired labor constitutes a foreign workforce, their incomes will be taxed according to the same rules that currently apply to income—based on the Income Tax Act. Since the incomes are defined by the Income Tax Act, they will be taxed accordingly: if they currently pay income tax, they will continue to do so, and if they do not currently pay, they will not pay in the future either.
Esimees Lauri Hussar
AI Summary
The Chairman calls upon Helle-Moonika Helme to speak.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
The presentation emphasizes tax optimization and the support of large corporations, but small businesses suffer and face potential bankruptcy. Furthermore, the question is raised whether an impact assessment has been conducted and whether such security and tax revenue collection are actually guaranteed.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
Maris Lauri stated that the issue has been addressed, the forecasts account for 20% profit concealment, and specific calculations have been provided in the explanatory memorandum.
Esimees Lauri Hussar
AI Summary
The Speaker thanked the rapporteur, informed the chamber that there were no questions and that the debate would be opened, and then, on behalf of the Isamaa faction, invited Aivar Kok to the Riigikogu rostrum to speak.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk stated that the draft security tax bill is essentially the taxation of the Reform Party's election promise, arguing that it harms pensioners, fails to meet genuine investment needs and the necessity of funding defense expenditures, and is therefore clearly deceptive.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asks the audience if they would like additional time.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asks for three additional minutes.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
As a representative of Isamaa, Aivar Kokk stated that the economy must be revitalized by cutting taxes, not raising them, and proposed a billion-euro saving: ending the income tax relief for high earners, reducing the number of white-collar positions by about 23,000, postponing state contributions to the second pension pillar if necessary, and giving people the option of an additional 2–6% contribution. He also called on the coalition to reject Draft Law 512 concerning the security tax during the first reading.
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar invites Kalev Stoicescu to the Riigikogu podium to speak, on behalf of the Eesti 200 faction.
Kalev Stoicescu
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalev Stoicescu thanks taxpayers and all Estonians, confirms Estonia's continued national defense funding exceeding 3% of GDP, promises a major one-off investment into national defense and civil resilience, as well as investments planned for 2025–2027 through the security levy, and emphasizes strengthening NATO cooperation with allies and deterrence against Russia.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites colleague Raimond Kaljulaid to the Riigikogu rostrum to speak on behalf of the Social Democratic Party faction.
Raimond Kaljulaid
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Raimond Kaljulaid emphasized that to ensure Estonia's security, national defense expenditures must be continued and increased, and every euro will go toward this purpose, highlighting long-term investments, specifically 1.6 billion in ammunition purchases, drones, border guard capabilities, and crisis reserves, as well as the necessity of making difficult decisions regarding tax changes, contrasting this approach with the opposition's populist promises.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar requests two additional minutes.
Raimond Kaljulaid
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
He said that he only asked for one, not two.
Esimees Lauri Hussar
AI Summary
In summary, this means that Raimond Kaljulaid now has the time and opportunity to take action.
Raimond Kaljulaid
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Raimond Kaljulaid stressed that national defense spending must be based on actual needs and their associated costs, rather than on a political understanding of what is currently feasible, because failure to do so puts the state at existential risk. He also expressed his belief that the security tax bill can move forward.
Esimees Lauri Hussar
AI Summary
The Chairman thanks Raimond Kaljulaid, notes that the granting of two minutes was justified, and invites Rain Epler of the EKRE parliamentary group to the Riigikogu rostrum to speak.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler criticizes the explanatory memorandum of the draft bill, arguing that although the proposed profit tax rate is 2% and the impact is significant, it would only yield limited additional revenue. Furthermore, it would create risks related to profit hiding and the strengthening effect of consumption taxes. He notes that the share of consumption taxes in Estonia is already high, and the country's economy could deteriorate due to the competitiveness of Latvia and Lithuania. He also highlights state budget waste on projects like Rail Baltic, renewable energy, and bureaucracy, emphasizing that additional measures must be carefully evaluated and the efficiency of ministries improved.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar requested three minutes of extra time.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler criticized the deficiencies of the 2024 budget, noting that 69 million euros in revenue from financial transactions had initially been left unplanned but was later discovered. He also highlighted the substantial annual PR costs, amounting to 12–15 million euros, and suggested cutting them down to zero. Epler remarked that ministers should be capable of discussing their own work and proposed rejecting the draft bill during its first reading.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked [the previous speaker] and announced that because Leo Kunnas's name had been mentioned during Raimond Kaljulaid's speech, Leo Kunnas would now deliver a response address.
Leo Kunnas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Leo Kunnas emphasizes that the concept of "national defense within our means" was flawed and that the reaction to the crises in Crimea and Donbas fell short. Estonia must therefore boost its defense capacity and coordinate its objectives with NATO, which will lead to higher spending, and I don't foresee this tax being eliminated by 2028.
Esimees Lauri Hussar
AI Summary
On behalf of the Center Party faction, Lauri Laats is invited to the Riigikogu rostrum to speak, and Lauri Laats requests three minutes of additional time.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats announced that the Centre Party does not support the proposed increase in VAT and income tax, and instead prefers a bank tax and the taxation of platforms for funding, emphasizing that consumption taxes harm the economy and the state budget, and will submit a motion of rejection.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar, on behalf of the Reform Party faction, requests that Maris Lauri be allowed to speak at the Riigikogu rostrum, and Maris Lauri asks for three minutes of additional time.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
Maris Lauri said that Estonia has been increasing its defense spending since 2022 and plans to continue this, but the financing must be handled honestly and with a substantive plan, avoiding demagoguery, and strengthening unity and cooperation with democratic countries in order to resist Russia's pressure and protect Estonia's security.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar declared the discussions closed and put to a vote the proposal by three factions (Isamaa, EKRE, and the Estonian Centre Party) to reject the first reading of draft law 512 on the security tax, calling upon the Riigikogu to take a position and cast their votes.
Esimees Lauri Hussar
AI Summary
The proposal received 19 votes in favor, 56 against, with no abstentions; it did not pass. The first reading of Bill 512 has concluded. The deadline for submitting amendments is October 30th of the current year at 17:15.