Value-Added Tax on Foodstuffs
Session: 15th Riigikogu, 5th session, information briefing
Date: 2025-01-22 14:54
Participating Politicians:
Total Speeches: 10
Membership: 15
Agenda Duration: 11m
AI Summaries: 10/10 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The central topic was the ideas surrounding a reduction in the VAT rate on groceries and their impact on food prices in Estonia and the supply chain. The speakers were Regional and Agricultural Minister Piret Hartman, and the question was raised by esteemed colleague Siim Pohlak. EKRE submitted a bill to the Riigikogu to reduce the VAT rate on food to 5%, and the opposition inquired whether the government plans to approve this proposal or if there are other considerations preventing the adoption of the reduction. The debate also encompassed the general inflation and the impact of the tax system on people's purchasing power, as well as the state's ability to make fair and measured decisions, rather than rushing.
Decisions Made 1
No formal decision was made; plans and specifications were presented: the preparation of an analysis to assess the impact of value-added tax on foodstuffs will be completed by April; investment in agriculture will continue, and discussions with the European Union regarding the functioning of supply chains will continue; we will make a final decision within the framework of autumn budget negotiations after a more thorough analysis and input gathering.
Most Active Speaker
The most active speaker was Siim Pohlak (pid Nm6t5Eds7aw), an opposition politician and representative of a right-wing party. He posed two clarifying questions and emphasized the need for decisions based on faster and clearer results, taking into account people's purchasing power and the current state of prices.
Aseesimees Toomas Kivimägi
AI Summary
We continue with the fifth question, which is posed by Siim Pohlak to the Minister of Regional Development and Agriculture, Piret Hartman.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Siim Pohlak emphasizes that the prices of foodstuffs have risen unreasonably in recent years due to the government's actions and the rise in VAT, and calls on EKRE to vote today in favor of lowering the VAT on food to 5%, and asks whether they have plans to do so.
Regionaal- ja põllumajandusminister Piret Hartman
AI Summary
Regional and Agricultural Minister Piret Hartman said that Estonia's food basket is 9% more expensive than the EU average, and food prices have risen by about 40% in recent years, and although the ministry is seeking solutions, including lowering value-added tax in cooperation with the Estonian Rural Development Foundation, it cannot immediately support the EKRE-proposed bill for a 5% VAT, because only 13% or 9% is possible, and the impact on the state budget and final prices must be thoroughly analyzed.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi invited Siim Pohlak to pose a clarifying question.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Siim Pohlak claims that both the previous and the current government have caused price increases, and calls for considering EKRE's 5% VAT bill and setting a concrete deadline for a decision on lowering the VAT on food products.
Regionaal- ja põllumajandusminister Piret Hartman
AI Summary
Regional and Agricultural Minister Piret Hartman stated that the analysis will be completed by April in cooperation with partners, including international ones, to strengthen food producers and to continue investments amounting to billions of euros in agriculture and food production, to ensure the continuation of European Union subsidies and to discuss fair treatment of the supply chain and the expansion of export capacity, including the interest of a Saudi Arabian delegation in Estonian products, in order to keep prices reasonable and competitive.
Aseesimees Toomas Kivimägi
AI Summary
During the speech, Rain Epler was asked to pose one additional question.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler criticizes the public sector's overuse of analyses and working groups, which leaves initiatives unimplemented, calls for being bold and actually doing something to improve people's livelihoods, and points to tax cuts as an example that action is needed, not just analysis, while asking why real steps aren't being taken when other countries are lowering the VAT on food.
Regionaal- ja põllumajandusminister Piret Hartman
AI Summary
The government emphasizes that all decisions must be justified and thoroughly analyzed, weighing various options to ensure affordable food prices and discussing them broadly; in spring the materials will be ready, and in autumn additional changes related to the state budget will be made.
Aseesimees Toomas Kivimägi
AI Summary
The deputy chairman Toomas Kivimägi thanks and ends the consideration of this question.