Draft law amending the Value Added Tax Act and the Tax Procedure Act (462 SE) – third reading
Session: 15th Riigikogu, 4th session, plenary session.
Date: 2024-11-13 16:30
Participating Politicians:
Total Speeches: 4
Membership: 15
Agenda Duration: 11m
AI Summaries: 4/4 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The second agenda item concerned the third reading of the draft law amending the Value Added Tax Act and the Tax Procedure Act 462, initiated by the Republic of Estonia's Government. The event began with a public discussion where Urmas Reinsalu represented the Isamaa faction and requested additional time, receiving eight minutes to continue speaking. While technically a discussion of the draft law, it provoked a pointed political debate: the governing coalition proposed an increase in VAT as part of the 2025 budget, the impact of which on the economy and people's ability to cope remained questionable from the Isamaa perspective. Isamaa has emphasized that a fiscally responsible alternative to the budget could keep inflation under control and promote economic growth without additional tax increases. The conclusion of the session was strongly tied to questions of why parliament was unable to put Isamaa's alternative proposals to a vote and why the governing bloc was blocking them. The second part of the discussion focused on the context of the budget period and tax changes, including the assessment of state defense and economic prospects. Ultimately, the process moved to a final vote, and the questions raised were related to the consequences of that decision for both inflation and the economy.
Decisions Made 1
Bill 462 was put to a final vote and passed into law; the result of the final vote was 65 in favor, 1 against, with no abstentions.
Most Active Speaker
The speaker is formally nHm--Ta7jVU, representing the governing coalition; position: right. He was the most active speaker in the debate, representing the coalition’s positions on VAT and budget matters, attempting to explain the government's planned policies and emphasizing the need for a nationally strong budget and economic stability.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi announced the third reading of the draft law on amendments to the Value-Added Tax Act and the Tax Administration Act, draft No. 462, and opened negotiations; Urmas Reinsalu, on behalf of the Isamaa faction, requested extra time, eight minutes.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu said that the government coalition's 2025 budget, in addition to the already applicable 22% value-added tax, would bring a 2 percentage point increase and would raise the tax burden by more than one billion euros, which could worsen inflation and economic growth, and the Isamaa alternative budget and proposals to cut spending would be blocked in Parliament, which calls for dialogue and a more unified national budget strategy.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi ended negotiations, proposed to hold the final vote on Draft Bill 462 and to prepare it, and asked colleagues to take a stance and vote on the Government-initiated draft law amending the Value-Added Tax Act and the Tax Procedure Act.
Aseesimees Toomas Kivimägi
AI Summary
The Estonian Parliament voted on Bill 462: 65 in favor, 1 against, there were no abstentions; the bill became law.