First reading of the draft resolution of the Riigikogu, "Submitting a proposal to the Republic's Government to lower the value-added tax on foodstuffs to 5 percent" (492 OE)
Session: 15th Parliament, 4th sitting, plenary session
Date: 2024-11-07 12:03
Total Speeches: 72
Membership: 15
Agenda Duration: 1h 10m
AI Summaries: 72/72 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The current agenda focused on the procedure for draft resolution 492 of the Riigikogu, submitted by the Estonian Centre Party faction, titled "Proposal to the Republic of Government to reduce the VAT on foodstuffs to 5 percent." The draft was presented with the aim of reducing the VAT on foodstuffs from 22% to 5%, thereby alleviating consumer costs and improving purchasing power, especially for people with lower incomes and pensioners. Andrei Korobeinik (Centre) served as the presenter, and the discussion included state funding sources, including bank taxes and increasing the efficiency of the public sector. Various viewpoints were raised: how and whether to allocate funds from the state budget, what impact the draft would have on the budget, and how to ensure that the discount reaches consumers and not just trade. Doubts and alternative solutions were expressed, including the different positions of the coalition and other parties on food prices and balancing incomes.
By the end of the first agenda item, it became clear that although the draft was clearly an initiative of the Centre faction, it did not reach consensus with the coalition or opposition for a plenary vote, and the voting result showed that the draft was rejected. It was also noted that continuing the agenda item in a second part is difficult in the current situation, as the Constitutional Committee rapporteur is ill and the Deputy Chairman is absent. This combination of various factors showed that parliament has entered a temporary impasse and needs further decisions and organization within the left-wing coalition. Discussion followed regarding potential funding sources and next steps, including the possibility of placing the item on the third agenda or the third agenda next week, and considering further proceedings on the draft.
Decisions Made 2
Bill 492, a proposal to reduce the VAT on food, was rejected in the plenary session of the Riigikogu (voting result: 15 in favor, 0 against, 0 abstentions).
The discussion of agenda item was postponed to next week, as the rapporteur from the Constitutional Committee is ill and the deputy chair is absent; work cannot continue in its current form.
Most Active Speaker
The most active speaker was pid vw5WQVoukVA, who represents the Estonian Centre Party faction and embodies the centrist line (position: other). This representative readily referred to both the content of the bill and the broader political background of the issues involved in the debate, focusing on clarifying the bill’s impacts and funding sources, while also highlighting the experiences of other countries and potential solutions.
Aseesimees Arvo Aller
AI Summary
First on the agenda is the draft Riigikogu resolution No. 492 submitted by the Estonian Centre Party faction, which recommends reducing the VAT on foodstuffs to 5 percent, and as the initiators' representative, Riigikogu member Andrei Korobeiniku is asked to take the floor.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik wanted to cut the value-added tax on groceries to 5% and proposed, as sources of funding, a bank tax bill, increasing the efficiency of the public sector, and a progressive income tax, in order to save the Estonian economy and improve people’s purchasing power.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller notes that there are questions, and asks Anastassia Kovalenko-Kolvarti to come forward.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart thanks her colleague for a very important draft and notes that Latvia is considering various proposals to regulate food prices (a cap on daily markups, a price reduction on one product in each product group, a digital price‑comparison platform, a ban on destroying unsold food, and an end to excessive discounts) and asks why her draft is better than these ideas.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik said that the most sensible move would be to cut VAT from 22% to 5%, which would lower the price of a shopping cart from €12.20 to €10.50 and help pensioners, those receiving a subsistence allowance, and the unemployed, while other proposals sound odd and Latvia’s economy has performed better in recent years.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller asked Lauri Laats to speak.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats praised the Latvian government's idea of lowering food prices, noting that there are differences in taxation among EU member states, and the Spanish-based example of using an olive oil price exemption shows how exemptions can stimulate the economy, but he warned that the effects of the measures become evident from time to time and consumers may cross the border.
Aseesimees Arvo Aller
AI Summary
The speech emphasizes that it is time for you to act.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik expresses concern about the worsening situation of poverty and pensioners, and stresses that preserving the VAT exemption on food and everyone pressing the green button together could help improve the situation.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller asks Vladimir Arhipov to come on stage.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov emphasized that cutting value-added tax is important for every Estonian, but as the state treasury shrinks one must ask how the shortfall will be compensated, and whether the bank tax, which some minister called a robbery tax, can cover it and whether such a solution would increase the turnover of catering businesses.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik says that the Reform Party defends banks from an additional tax, and the banking tax bill is, for them, the only promise they have managed to fulfill, and he emphasizes that when people have more money in their hands, they spend more and tax revenues increase, which is the first step in getting the economy moving—therefore he calls for public support of this bill.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller asks Aleksei Jevgrafovit to step forward.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The Centre Party's draft bill aims to reduce the VAT on groceries to help low-income consumers, taking as an example the practices of many European Union member states, but it is important that the tax cut actually reaches the consumer, not the merchants, and the draft presents a solution to ensure this.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik said that lowering VAT reduces the price of food products, because shops share profits with consumers, cited the example of Spain and urged people to vote in favor of the bill.
Aseesimees Arvo Aller
AI Summary
There are no further questions; thank you to the presenter. Please present to Marek Reinaas, a member of the Finance Committee, a briefing on the discussion that took place in the steering committee.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Marek Reinaas described the Finance Committee meeting, where the draft proposal to reduce the VAT on foodstuffs to 5% was discussed, noted that the discussion was brief and that 5% is currently not feasible, and it was decided to bring the draft to the plenary by November 7 and to designate Marek Reinaas as the representative on the leading committee.
Aseesimees Arvo Aller
AI Summary
Arvo Aller invited the audience to submit questions and asked Lauri Laats to present his own question.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats highlighted Estonia's regional inequality, the gaps in food prices and wages, and noted that 25 European Union member states apply VAT exemptions for food; Estonia and Denmark are the only ones not, and he criticized the government's VAT increase, which makes food even more expensive, asking whether the other EU member states aren't on the wrong track with their VAT policy.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Marek Reinaas said that he is reading the minutes of the committee meeting, the discussion about which path the other European Union member states are on did not take place, and he believes that the European Union and the member states are on the right track.
Aseesimees Arvo Aller
AI Summary
The vice-chairman invited Andrei Korobeiniku to speak.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik noted that this is a draft resolution, and lowering the food value-added tax to 5% would require amending the VAT Act, which the Riigikogu will decide, and he asked what his personal position is and whether a recipient of a subsistence allowance could buy cheaper at the store.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Marek Reinaas noted that if the Riigikogu decides to support the draft, it will be assigned to the government as a task, and it would be good to know the funding sources and the direct impact, but the personal opinion will be discussed separately, since the current position is that of the rapporteur and it was not discussed in the committee.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov accuses the governing coalition of not caring about the people, and points out that small and medium-sized catering businesses are in trouble and the situation is worsening due to the COVID-era downturn in turnover and the rise in value-added tax, and he asks whether lowering taxes would help them increase turnover and stay afloat.
Aseesimees Arvo Aller
AI Summary
At the beginning of the speech, Vladimir Arhipov is invited to come on stage.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Marek Reinaas thanked the question and noted that the topic has been discussed in this Riigikogu session as well as in previous sessions, and different parties have participated in it, but the matter of catering enterprises and the impact of lowering value-added tax on their turnover has not been discussed at the committee meeting, as the protocol shows.
Aseesimees Arvo Aller
AI Summary
The speech begins with the invitation of Aleksei Jevgrafov.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksei Jevgrafov thanks the presenter and asks to find out who attended the session and who voted against the Centre Party's draft bill.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The names of the people who attended the meeting were read aloud, and by consensus it was decided to send the draft decision to the chamber for its first reading, since the committee did not make a decision on this matter.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller presents a brief request: Kalle Grünthal, please!
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Grünthal proposed lowering the value-added tax on food to 5%, saying it is very necessary for people’s livelihoods, and warning that if the decision is not supported, it could have a fatal impact on the party at the elections, while pointing to Eesti 200’s low rating.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Reinaas said that it is very difficult to find a response in the minutes of this session, Eesti 200's rating is not discussed here, and it will be discussed by the Eesti 200 board and faction (possibly also behind the cafe table), and they thanked the audience that during difficult times they have lost a few kilos and still look good.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller invited Anastassia Kovalenko-Kõlvarti to speak.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart thanked the presenter, noting that the funding source could be a bank tax, expressed approval of the idea, and asked what alternative measures would be available to support less insured people in the event that the coalition does not back the bill.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
They said that the Centre Party has submitted a bank tax bill, and the Finance Committee will discuss it when the time comes, and regarding the second issue, the committee did not discuss the option of lowering VAT to 5%.
Aseesimees Arvo Aller
AI Summary
The presenter was thanked, and no more questions were asked.
Marek Reinaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He thanks wholeheartedly.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller opened negotiations with the factions; on behalf of the Estonian Centre Party faction, Lauri Laats asked for three extra minutes.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats emphasizes that lowering the value-added tax on food is necessary for people's livelihoods, local producers and tourism, and calls on the coalition to stand behind this bill in a statesmanlike manner.
Aseesimees Arvo Aller
AI Summary
Helle-Moonika Helme represents the EKRE faction and submits a plea.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
The presenter stressed that although European countries take people's well-being into account, the Estonian government has ignored the proposal to lower the food value-added tax, and therefore it is necessary to take a step to ensure affordable and healthy food for everyone during times of crisis, especially for the poorer.
Aseesimees Arvo Aller
AI Summary
The speech announces two minutes of added time.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme claims that funds are directed to large ideological projects such as Rail Baltica and the green transition, which raise food prices and are funded by a car tax paid by consumers, and she urges people to vote in favor of this bill for the sake of the people’s well-being.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller ended the negotiations, announced that no amendments had been submitted, and referred to the final vote the draft bill No. 492 submitted by the Estonian Centre Party faction to reduce the value-added tax on foodstuffs to 5 percent, noting that its adoption requires a majority of the Riigikogu's members.
Aseesimees Arvo Aller
AI Summary
The Riigikogu sent back Bill 492 and moved on to the second item on the agenda, but due to the illness of the committee's rapporteur and the Constitutional Committee chair's foreign trip, officials are trying to find a deputy chair, and the chair takes a five-minute break.
Aseesimees Arvo Aller
AI Summary
Arvo Aller announced that due to the illness of the Constitutional Committee's rapporteur, the committee chair's foreign assignment, and the absence of deputy chair Frosch, it is not possible to convene the committee meeting, and the given agenda item is postponed to the next week; before the third agenda item, a couple of questions were put to the chair.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Grünthal describes a humorous episode in which the Reform Party's deputy chair, Toomas Kivimägi, could not find his desk and ended up not taking part in the vote, and makes two proposals: to give him training on the conduct of voting and on finding a desk, and to organize, more broadly in the Riigikogu, a separate voting training for the Reform Party.
Aseesimees Arvo Aller
AI Summary
He explains that everyone has designated places and the names are written, and since they have already been in the same places for more than a year and a half, each person finds their own place themselves.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik emphasizes that at a constitutional or steering committee meeting other members may also speak; he believes in the capability of the Riigikogu's MPs, and asks whether perhaps another committee member could take on the role of the presenter.
Aseesimees Arvo Aller
AI Summary
Everything is correct, but the committee's rapporteur can organize the committee only through a meeting, which can be convened only by the chair or the vice-chair, and therefore the item is omitted due to the impossibility of conducting the proceedings.
AI Summary
Rene Kokk asks the esteemed chairman why Timo Suslov isn't coming here to present on behalf of the committee and whether he informed the board, and why Ants Froschi isn't present — is he ill, and what illness is it — and asks that the matter be investigated.
Aseesimees Arvo Aller
AI Summary
He said in today’s speech that he would not delve into the topic of illnesses, affirmed that if a person is sick, he is sick, and noted that the information had come relatively recently during the processing of the first item on the agenda, and that within five minutes they tried to find a solution.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme accuses the Reform Party and the coalition of hypocrisy, saying that they do not show up to discuss the day's agenda item in the plenary hall and use illness as an excuse, although on the same topic they had previously harshly criticized.
Aseesimees Arvo Aller
AI Summary
We tried to find a practical solution and respond quickly, but the main presenter fell ill, the chair of the commission was away on a long assignment, therefore the vice-chair had to stand in, but he was out of Tallinn, and it was requested that Siim Pohlak take on this task.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Siim Pohlak asks, in an extraordinary session, why it couldn't be decided via an online meeting who the presenter should be, given that the vice-chair is outside the Tallinn region and there is no coalition representative in the hall, and he suggests using an electronic solution to choose a new presenter and move on.
Aseesimees Arvo Aller
AI Summary
The commission officials are trying to find a solution for holding the meeting either electronically or in person, because at the moment they cannot physically come together, since the chair and the deputy chair are out of the building.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
According to Korobeinik, to resolve the situation one should use an analogy and turn to the oldest member of the committee (or the next oldest), so that someone can give a presentation, and the solution is often simple if you simply find it.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller emphasizes that good solutions are simple, and together with officials they are trying to find a way forward on how to conduct the meeting and what to do next today.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats urged the Riigikogu leadership and the Constitutional Committee to promptly initiate processing of the Centre Party's bill, by which the salary of a Riigikogu member would be brought in line with their work contribution, in order to solve the current stalled work and similar situations.
Aseesimees Arvo Aller
AI Summary
The board has already sent the draft to the relevant committee, and it is under the committee's consideration.
Priit Lomp
AI Summary
Priit Lomp thanked and praised the Deputy Speaker of the Riigikogu and reassured his colleagues, saying that although two weeks ago work was hampered due to the absence of EKRE MPs, the situation today is better, and he hopes to have the matter dealt with next Thursday.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller thanked the attendees for their remarks and invited Rene Kokk to speak.
AI Summary
Rene Kokk invited the chair to talk during the break and to find a representative from the Constitutional Committee who reads the protocol aloud, so that the handling of that point could be carried out calmly and inclusively.
Aseesimees Arvo Aller
AI Summary
The proposal has been put in writing, and Helle-Moonika Helme is invited to speak.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
They ask a fundamental question: would Parliament's work be paralyzed if by now we didn't have more agenda points to process than this one question, as was claimed last time due to the illness of the main speaker, and right now Timo Suslov is also ill.
Aseesimees Arvo Aller
AI Summary
The Riigikogu's work was not paralyzed on the Thursday of the week before last, nor has it been paralyzed during this week, and we are working on finding a solution.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
I propose to place this draft on next week's Wednesday agenda, not on Thursday, to ensure the coalition's attendance and the Constitutional Committee's co-rapporteur's presence, and to prevent the proceedings from dragging on.
Aseesimees Arvo Aller
AI Summary
In Arvo Alleri's speech, it is emphasized that for organizing the work of the commission the chair and the vice-chair have their own functions, and the vice-chair Frosch should have been ready to chair the meeting and, if necessary, deliver a report, but why he is away from the building is unknown and the officials are dealing with it.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets said that there is irritation here, even anger, reminiscent of Kaja Kallas, but the discussion is substantive and the aim is to ultimately solve the issue, and the bad circumstances could come together all at once, therefore remote sessions should be considered if COVID begins to spread.
Aseesimees Arvo Aller
AI Summary
The speech thanks them for the proposals and asks Lauri Laats to take the floor.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats notes that the work is constructive and the discussion is going well, but he is worried about the formation of the Rail Baltica inquiry committee, because many Riigikogu members are absent from the chamber and there may be few votes, and he recommends that the important points be forwarded by Wednesday until the Centre Party's proposed law comes into effect, by which the Riigikogu member's salary is tied to his contribution.
Aseesimees Arvo Aller
AI Summary
Due to illness, a foreign assignment, and the absence of the deputy chair, the consideration of the second item on the agenda is impossible and it is being postponed.