Inquiry regarding tax changes (no. 657)
Session: Fifteenth Riigikogu, Fourth Session, Plenary Session
Date: 2024-11-18 18:36
Participating Politicians:
Total Speeches: 36
Membership: 15
Agenda Duration: 31m
AI Summaries: 36/36 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The current agenda item concerned a question posed by Members of Parliament Urmas Reinsalu, Aivar Kok, Mart Maastik, Riina Solman, Priit Sibula, Tõnis Lukas, Andres Metsoja, Jaanus Karilaiu, and Helir-Valdor Seedri regarding tax changes. The question focused primarily on potential tax increases and fee alterations, and Jaanus Karilaiu was requested to present the question before the Parliament's rostrum as the preparer and representative. According to the initial description, the questioner wished to understand what legislative initiatives had been prepared and what their projected impact would be on citizens and businesses.
The second part of the agenda item consisted of the Prime Minister's response, which stated that tax peace would remain in effect until 2027 and that no major new taxes were planned, but there were clarifications regarding broad-based security taxation and covering associated budget and defense expenditures. There was a discussion about what taxes and fees might actually increase in the coming years (packaging tax, waste fees, etc.) and how these topics might affect the population and businesses. Criticism emerged regarding the transparency of tax policy and collaboration with business owners, ultimately pointing to the need for continued negotiations and discussions. In conclusion, the agenda item lacked a clear parliamentary decision; the day ended with an exchange of opinions and confirmation that the introduction of new taxes until 2027 is not planned.
Decisions Made 1
No decisions were made during the agenda item. The government's position was to confirm that tax peace will continue until 2027 and that the introduction of new taxes is not planned; however, a need was noted to discuss and clarify potential tax increases, including topics such as packaging taxes and waste fees. This was a discussion and inquiry session, not a final legislative decision.
Most Active Speaker
Jaanus Karilaid was the most active speaker on this agenda item. He posed several specific, demanding questions focused on the topic of tax policy and directed the discussion's attention to various potential tax increases and their impact on residents and businesses. As a member of the Isamaa faction, Karilaid acts as a right-wing position in parliament, and his participation in democratic debate reflects a role of opposition or opposition oversight and control.
Esimees Lauri Hussar
AI Summary
As the second item on the Riigikogu's agenda, the interpellation submitted on 16 October regarding tax amendments will be discussed; the presenter will be Riigikogu member Jaanus Karilaiu, and he will be given five minutes.
Jaanus Karilaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaanus Karilaid submitted a parliamentary inquiry, asking the Prime Minister to confirm that in the coming years the government does not intend to raise taxes or charges, and to explain which legislative initiatives he is preparing to increase taxes or fees (for example, the intentions to increase the packaging tax, the waste fee, and local governments’ tax revenues), referring to Lithuania as an example, and asking that in the response he avoid mentioning the war in Ukraine.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked and asked Prime Minister Kristen Michal to return to the Riigikogu rostrum to answer the interpellation.
Peaminister Kristen Michal
AI Summary
The prime minister confirmed that tax stability will continue until 2027 and no new taxes will be introduced, but there is a plan for a temporary security tax, which will raise about 2.47 billion euros in total from 2025 to 2028 and will end at the end of 2028, and the debate on the revenue base of local governments must be held in the 2027 elections.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks the prime minister and announces that there are questions; Varro Vooglaid will be the first to speak.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Varro Vooglaid thanks the listeners, notes that the tax increases of the ruling government coalition are aimed at ensuring broad-based security, and expresses interest in whether, and how large, the real difference is in Estonia's defense capability in the event of a war with Russia, with those expenditures in place compared to their absence.
Peaminister Kristen Michal
AI Summary
The coalition emphasizes that security expenditures must be funded, and between 2025 and 2031 they will be allocated according to the Ministry of Defence's proposal; in addition, ammunition worth 1.6 billion euros will be purchased, which would enable carrying out an operation on the opponent's territory in a military conflict; otherwise, Estonia's defense capability and defense spending would be significantly lower.
Jaanus Karilaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaanus Karilaid emphasized that he wants a very concrete answer and noted that although he does not plan to raise income tax and social tax, government policy is pushing price increases and making services more expensive, and he asked whether and by how much electricity, food, and waste disposal prices will rise in 2025 and 2026, and whether there is an impact assessment on this.
Esimees Lauri Hussar
AI Summary
The chairman Lauri Hussar invited Jaanus Karilaid onto the stage.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that energy market prices depend on competition and renewable energy sources, and if the market has enough producible supply and the connections are functioning, the price of electricity may fall over time. Estonia ranks high in Europe when it comes to electricity prices, and increasing competition in the waste-collection market should be discussed in the Isamaa Economic Club with Argo Luud.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats notes that although Scandinavian electricity prices are falling thanks to hydro energy, which we do not have, the cost of living is rising due to tax increases, and he points to, for example, the rise in notary fees and in Rain Epler's haircut price, accusing the government of this.
Esimees Lauri Hussar
AI Summary
The chairman invited Lauri Laatsit to perform.
Esimees Lauri Hussar
AI Summary
The chairman, Lauri Hussar, emphasizes that the question must be worded very briefly and quickly.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats claims that taxes, state fees and notarial fees are regulated at the national level, and that the money goes out of people's pockets, which should be interpreted as the continuation of a tax festival.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that the issue of notary fees is mainly a regional political issue, and if the fees are not raised, notary services in regional centers will be scaled back; therefore one must choose whether to raise fees or reduce services, and Parliament should take into account the distinction between taxes and state fees.
Esimees Lauri Hussar
AI Summary
The chair, Lauri Hussar, asked Helir-Valdor Seeder to take the floor.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder criticizes that entrepreneurs and other target groups were left out, and although the prime minister promised direct contact, concerns about tax policy and instability still reach the entrepreneurs, and the concern in the Chamber of Commerce's letter about the introduction of new taxes and expanding the tax base confirms this.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that the government does not need the Isamaa faction's mediation help, but is prepared to discuss good proposals, and tax issues are topical, and although the discussion about changing the revenue base of local authorities provokes a backlash, tax peace remains, and the introduction of a broad security tax will not come by 2027.
Esimees Lauri Hussar
AI Summary
The chairman Lauri Hussar invites Mart Maastik onto the stage and asks him to speak.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mart Maastik explained that he does not support cars parking on the sidewalk, and the service transport, which previously could stop on the sidewalk, has now lost that right, and he asked for a concrete answer whether new taxes will come or only fees, such as the packaging tax and the waste fee, which are not taxes but fees.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that changes to traffic rules will make the sidewalk safer and that loading areas for goods will be created, and that no new taxes will be introduced – sugar tax and packaging tax – and that, according to the Ministry of Climate, this will also be taken off the table – and reforms, including the cleaning up of the waste market, are not taxes.
Esimees Lauri Hussar
AI Summary
The Speaker thanks the Prime Minister, announces that the questions have been concluded, opens negotiations, and asks the representative of the questioners, Jaanus Karilaiu, to take the floor, adding that five plus three minutes can be taken.
Jaanus Karilaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaanus Karilaid says that we will monitor this in real time.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asks why three minutes aren't being added right away.
Jaanus Karilaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaanus Karilaid said that he would not do it right away.
Esimees Lauri Hussar
AI Summary
He says that we should start with five minutes.
Jaanus Karilaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Jaanus Karilaid claims that the prime minister has lost his footing for three reasons: the competitiveness of Estonia's economy is declining and there are no targeted entrepreneurship programs; the constitutional amendment is incomplete; and the energy portfolio is uncertain and there is no clear plan for the introduction of nuclear energy.
Aseesimees Toomas Kivimägi
AI Summary
The speech contains thanks and a prayer to Mart Maastik.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mart Maastik said that the Reform Party has no mandate to raise taxes, and that they should look in the mirror, because voters have not given them a mandate for this.
Aseesimees Toomas Kivimägi
AI Summary
Members of the Riigikogu no longer wish to speak, but the Prime Minister does—please, Prime Minister Kristen Michal.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that at the elections the mandate should be sought on economic and tax matters, promised Estonia's largest industry's growth plan and investments in energy solutions (wind, solar, storage, and interconnections with Latvia and Finland), and stressed a compromise on the issue of voting rights for citizens of aggressor states and the need to amend the constitution, while at the same time confirming that the proposals will be discussed and adopted, but Ratas's economic plans will not be used as a basis.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi thanks the prime minister and announces that, despite the usual speeches, there will now be a response speech, which will be delivered by Helir-Valdor Seeder.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Seeder noted that although the prime minister claimed that the government had launched the largest economic growth plan in history, in fact the largest tax increase plan in history has been launched, and he wants to clarify the stenogram.
Aseesimees Toomas Kivimägi
AI Summary
That was your personal position, after which Lauri Laats was asked to present a rebuttal.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats, speaking about the Narva situation, said that the Social Democrats are two-faced, and that the coalition forming will not bring anything good to Narva or to the people of Narva.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi ended the negotiations, announced that the agenda item had been exhausted, thanked the prime minister and said that we would continue here in this chamber.