Second reading of the bill amending the Income Tax Act and the Defence Service Act, and the bill amending the Income Tax Act (509 SE)
Session: 15th Riigikogu, 4th session, plenary sitting
Date: 2024-11-21 01:42
Participating Politicians:
Total Speeches: 57
Membership: 15
Agenda Duration: 48m
AI Summaries: 57/57 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
Agenda item 14 concerns the draft law amending the Income Tax Act and the Defence Service Act, and the amendments to the Income Tax Act, second reading of bill 509. The main objective is to postpone the tax shift until the beginning of 2026, and to adjust the thresholds for several tax-free benefits in line with inflation. In addition, allowances for various employee expenses, such as travel allowances, meals, and healthcare coverage, are being updated, and related rates are being changed. The committee discussed expanding the tax-free rate for healthcare and sports expenses, as well as the taxation of vehicles used by members of the Defence League. The bill was discussed on November 12th and 14th; four amendments were submitted, one of which (by Kristo Enn Vaga) was approved, while the proposals from the Isamaa faction were not. Ultimately, a consensus decision was made to end the second reading and to prepare a proposal to put the bill on the plenary agenda and to conduct the final vote on December 4th.
Decisions Made 1
The second reading will be concluded according to the coalition's intention; preparations continue for the bill's final vote in the near future, and the plan is to bring it to the plenary session on December 4th.
Most Active Speaker
The most active speaker: Annely Akkermann (chair of the finance committee) – a representative of a party residing in the centre-right coalition; she chaired the presentation and participated primarily in discussions on the main agenda item and in answering questions. From a viewpoint, she belongs to the right-wing political camp (coalition, with a background in Isamaa).
Aseesimees Arvo Aller
AI Summary
According to Arvo Alleri, we will continue with today's 14th agenda item and discuss Bill 509 in its second reading, which concerns amendments to the Income Tax Act and the Defence Service Act, and the presentation will be given by the chair of the Finance Committee, Annely Akkermann.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The briefing describes a draft bill whose core consists of amendments to the Income Tax Act and the Military Service Act, including the postponement of eliminating the tax wedge to the beginning of 2026, inflation-adjustment of the caps for several tax-free allowances, and the raising of the tax-free amount for health and sport expenses to 400 euros per year, and, alongside the discussions and proposed amendments, the plan to hold a meeting and the final vote on December 4.
Aseesimees Arvo Aller
AI Summary
The vice-chair Arvo Aller invited questions and asked Aivar Kokk to present his own question.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk asked in the committee how many training companies in Estonia offer nutrition counseling training, noting that no answer had been received from the ministry and that there may be more than one of them.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann asks whether nutrition counseling for adults and its tax-free reimbursement are really necessary, even though the Ministry of Social Affairs regards obesity as a major problem and notes that education in schools and investment in sports facilities have not helped, and people still eat poorly.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller asks Helmen Kütt to take the floor.
Helmen Kütt
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Helmen Kütt asks what the criteria are for inclusion in the list in subsection 66 of § 61 of the Income Tax Act and how to qualify for entry, and whether those criteria are based on turnover or on the amount of donations, so that NGOs helping Ukraine can receive donations tax-free.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
This particular decision was made regarding the Freedom Convoy NGO, because its aid-organizers team has been operating through the Rotary Club since the beginning of the war, and the campaign team split away from the Rotary Club's auspices; they have donated to the army over 400 vehicles and over 1,200 drones since the start of the Ukraine war, and are now continuing on their own; the circle of those rumored to be involved was not expanded.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller invites Aivar Kokk to speak.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk explains that the NGO tried to get on the list last year, but the commission did not grant consent and the Ministry of Finance did not support adding it, calling it clearly a political decision, and finally asks why the B category is missing from the driving license for the passenger car category and whether it existed in earlier laws.
Aseesimees Arvo Aller
AI Summary
This speech draws attention to the fact that the time is yours and you have an obligation to act.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Members of the Estonian Defence League usually use passenger cars or SUVs, as stated on the first page, Section 2, Point 5.
Aseesimees Arvo Aller
AI Summary
The speech was merely a thank-you message.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann explains that the substance of the proposed amendments concerns the taxation of vehicles used for the Estonian Defence League: at present, a passenger car may be used for the Estonian Defence League and a tax-free allowance may be received for it, but for vehicles in other categories the allowances, including covering the costs of a medical certificate, have not previously been tax-free by law.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller asks Helmen Kütti.
Helmen Kütt
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Helmen Kütt asked what the criteria are for adding to the list of organizations that assist Ukraine, and whether the commission could consider adding additional organizations, emphasizing that she is not critical of a particular NGO and that Ukraine really needs more aid, and that the discussion should begin with the creation of uniform, emotion-independent criteria.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
In the presentation it was stated that there are seven Ukraine-related NGOs, and they are monitored by the Tax and Customs Board on a list of 2,400 associations; they have a donation limit of 2–3% of the payroll fund or 10% of profits, and the list of Ukraine supporters is kept very short to avoid tax risks.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller asks Urmas Reinsalu to speak.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu accuses Mrs Akkermann of muddling the tax law and states that this tax burden will be continued for another year, but under this cover the child income tax exemption and the spouses' joint-declaration income tax exemption will be removed, and the whole package will come into force from the start of next year, increasing people's tax burden — why did you choose such a confusing interpretation?
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann stressed that the elimination of the tax shield would be fair and necessary, and that postponing it due to the budget position is a bad decision, especially in the context of funding NATO defense plans, where the various waivers of tax exemptions are not interrelated.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller turns to Urmas Reinsalu and says: "Please!"
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu said that the Reform Party's tax burden is financially beyond Estonia's means and that this project should be abandoned, but he agreed with the need for additional lunar resources and asked why the funds allocated for their procurement in next year's national budget are reduced by 96 million euros compared with 2024.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann said that this question was not addressed during the discussion of the bill, but asked to draw attention to defense industry programs that could enable rocket production in Estonia, and noted that the discussion within the scope of this bill may be pointless.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi invites Mart Maastik onto the stage.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mart Maastik thanks Mr. Chairman and Annely and notes that Annely regrets that the aforementioned tax burden is deferred by one year.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann expresses strong dissatisfaction and says that the situation is bad.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mart Maastik asks why optimism arises in the context of difficult times and the burden of the budget, where does the hope come from that next year there could be a surplus of around half a billion somewhere, and whether there are any large positive signals in the economy right now.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
I support the approved budget strategy, which is the supplementary budget that the government has approved.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks and announces that he has no more questions, and directs Urmas Reinsalu's question to the chair of the session.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu expresses confusion about a line in the state budget allocated for the purchase of munitions and its 96 million euro decrease, and asks how this fits with the government’s rhetoric about procuring munitions, emphasizing the contradiction between Ms. Akkermann’s answer and the demand for project-based funding in the development of the defense industry.
Aseesimees Toomas Kivimägi
AI Summary
This is not merely a procedural issue; I am opening negotiations and inviting Aivar Kokk to speak.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk states that the Reform Party's plan for an income tax exemption takes money from the poor and gives to the rich, and increases inequality and the burden on the state budget, and criticizes the latest amendments to the draft bill and the tax exemption for non-profit associations, referring to Isamaa's 2015 pledge of a 500-euro income tax exemption.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi asks to add three minutes.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk criticizes the coalition's draft bill process, where backdoor entry and lawmaking by a single person are not fair, and Isamaa does not support the draft's second reading and wants to halt Draft 509.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi asks Urmas Reinsalu to speak.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu warns that the Reform Party's tax-raising package will create financial instability in Estonia; over three years an additional tax increase of about 1.65 billion euros is planned, along with increases in all taxes, including value-added tax (VAT), and Isamaa calls to abandon it and establish minimum tax stability.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi asks for three more minutes.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu states that the government's claim about reducing administrative costs is misleading, because the 75 million euros of additional funding to buy ammunition does not compensate for the impact of a 96 million euro reduction in the Ministry of Defence's special equipment costs, and if these sums are consolidated, the actual cut would be 0.1%, i.e., 6 million euros from 4.5 billion, which is why a comprehensive solution and swift action are needed, not rhetoric and piecemeal solutions.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi thanks Mario Kadastikut and asks him for something.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kadastik said that this bill is an Isamaa-created ploy, according to which every additional euro earned is taxed at a higher rate, and asked to end the discussion and to respect the protocol.
Aseesimees Toomas Kivimägi
AI Summary
Colleagues are told that the presenter may speak and are asked not to interrupt.
Mario Kadastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kadastik corrected Aivar's claim and confirmed that the average salary is already over 2000 euros, and said that teachers and firefighters are the ones who benefit the most, which is why Isamaa does not want to give them more money.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi asked that those speaking at the podium not be interrupted, because although the emotion of the debate can be pleasant at times, a long interruption is impolite.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu criticized the Reform Party's tax policy, recalled the teachers' strike, and said that delaying the tax burden further would create a fiscal problem for the state, and Isamaa submitted an amendment, because next year the Reform Party will raise the income tax to 22%.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi thanks the audience.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu claims that everyone really has a higher tax rate, and the Reform Party's policy has implemented this.
Aseesimees Toomas Kivimägi
AI Summary
The deputy chair Toomas Kivimägi declares that the negotiations have ended, informing that six amendments have been submitted regarding this draft and that their examination will begin; the first amendment is from the Isamaa faction, and the leading committee's position is to leave it unconsidered, Helir-Valdor Seeder, please!
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
They ask you to vote for this amendment proposal.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi announced that, within the framework of Bill 509, Amendment No. 1 submitted by the Isamaa faction will be put to a vote, but the steering committee recommends disregarding it, and urged colleagues to take a stance and vote.
Aseesimees Toomas Kivimägi
AI Summary
6 in favor, 51 against, 0 abstentions; amendment no. 1 did not receive support, no. 2 was submitted by the Finance Committee and the leading committee wishes to take it fully into account, no. 3 was submitted by the Isamaa faction and the leading committee wishes to leave it unconsidered.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder asks that this amendment proposal be voted on.
Aseesimees Toomas Kivimägi
AI Summary
Colleagues, we are preparing for the vote, and I will put Amendment No. 3 to the vote, which was submitted by the Isamaa faction, but the lead committee recommends disregarding it; please take a stand and vote.
Aseesimees Toomas Kivimägi
AI Summary
The proposal did not gain support: 6 in favor, 51 against, 0 abstentions; amendment no. 4 submitted by the Isamaa faction, and the leading committee's position is to leave it unconsidered.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
They ask you to vote in favor of this amendment proposal.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi proposed to bring to a vote the amendment no. 4 submitted by the Isamaa faction, noting that the lead committee wishes to disregard it, and asking to take a position and vote.
Aseesimees Toomas Kivimägi
AI Summary
The speech focused on stopping the second reading of Bill No. 509: all proposed amendments were reviewed, and the Isamaa faction's proposal to suspend the bill's second reading was put to a vote.
Aseesimees Toomas Kivimägi
AI Summary
The vote on the second reading of Bill 509 ended: 6 in favor, 50 against, 0 abstentions, and the proposal did not gain support.