Prime Minister's promise to end the tax festival
Session: 15th Riigikogu, 4th sitting, information briefing
Date: 2024-11-13 14:01
Participating Politicians:
Total Speeches: 11
Membership: 15
Agenda Duration: 11m
AI Summaries: 11/11 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The focus of the first question concerned the Prime Minister’s promise regarding taxes and tax peace, and the coordination round for the bill raising Notary fees. The 30% increase in Notary fees was assessed as a potential tax increase with a total amount of 11.5 million euros, and the discussion highlighted that Notary fees relate more to services carried out on the private market and real estate market activities, rather than directly to the concept of tax peace. At the same time, it was emphasized that in the context of the cuts necessary for tax peace and the ongoing recovery of the economy, it cannot be the case that taxes rise elsewhere while the state must ensure the financing of stability and security expenditures. During the current discussion, it became clear that changes to Notary fees and other service charges must be considered separately, and coordination rounds and the involvement of the Ministry of the Interior are necessary for future decisions.
The second part of the discussion focused on the security tax and its use in strengthening the state’s security. The PM explained that the revenue from the security tax is intended to patch budget holes and to finance the Ministry of Defence and broader defense expenditures, and this tax will remain in effect until 2028. In addition, it was mentioned that between 2025 and 2031, there are plans to acquire additional weaponry amounting to approximately 1.6 billion euros, and the total volume of the security tax will be approximately 2.3–2.4 billion euros. This substantial funding is directly linked to ensuring Estonia’s security and independence and, in reality, represents a deeper budgetary commitment than just a temporary tax arrangement. The discussion brought out that the balance between tax peace and the security budget is a complex but essential goal for Estonia’s continued resilience.
Decisions Made 1
No specific decision was made; the discussion continues and important topics, such as notary fees increases and the use of the security tax, require further consideration and coordination by the relevant institutions.
Most Active Speaker
The most active spokesperson among the heads of state was the prime minister (pid 5VNfkRwGZMI). Title: prime minister; political position: other.
Esimees Lauri Hussar
AI Summary
In the first question, Riigikogu member Lauri Laats asks Prime Minister Kristen Michal about the pledge to end the tax festival.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats notes that the 30% increase in notary fees, totaling 11.5 million euros, which has reached the Ministry of Justice's coordination round, would be a real tax increase, and asks whether the government is aware of this and how they view the situation, considering the economic situation and people's daily lives and the aim of tax stability.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that Estonia's economy is recovering and will begin to grow next year, although central government cuts and tax increases are necessary to secure the budget and security, and there are signs of better times and revival in the economy.
Esimees Lauri Hussar
AI Summary
The chair thanks and informs that next to take the floor will be Lauri Laats with a clarifying question.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats emphasized that the rise in notary fees must be halted because it will raise real estate prices and the overall price level together with next year's 24% value-added tax increase and a 4% rise in prices for new housing developments.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar expresses great gratitude and asks the Prime Minister for something.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that notary services are also a service provided by a liberal profession, and that for real estate transactions it is important that the purchase proceeds smoothly and correctly; notary fees have not risen for years, and although there have been plans to raise them, notary fees or other service charges must not be classified as taxes.
Esimees Lauri Hussar
AI Summary
The chairman thanked and asked that an additional question be put to Vadim Belobrovtsev.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Belobrovtsev raises the question of whether the money from the security tax actually goes to strengthening Estonia's security or merely to patching up budget holes, and emphasizes that the impact of taxes hits the most vulnerable.
Peaminister Kristen Michal
AI Summary
The Prime Minister said that the Russian aggression taking place in Ukraine is the biggest war since World War II, and therefore Estonia needs a security tax, with which in the coming years more than 5 billion euros will be spent on security, and from 2025 to 2031 there is a plan to purchase an additional 1.6 billion euros worth of extra armaments, roughly 2.3–2.4 billion euros of the tax is time-limited and will be in effect until the end of 2028.
Esimees Lauri Hussar
AI Summary
The chair thanks and announces that he will conclude the consideration of today's first question.