Hearing regarding the planned excise tax change (no 651)
Session: 15th Riigikogu, 4th session, plenary session
Date: 2024-12-02 17:44
Participating Politicians:
Total Speeches: 20
Membership: 15
Agenda Duration: 37m
AI Summaries: 20/20 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
Today's agenda item concerned the questions submitted by members of the Riigikogu – Lauri Laats, Aleksei Jevgrafov, Vladimir Arhipov, Andrei Korobeinik, Aleksandr Tšaplõgin, Vadim Belobrovtsev, and Anastassia Kovalenko-Kõlvart – regarding the planned excise tax changes. The aim of the questions was to obtain a response from the Minister of Finance on the impact of the planned excise tax changes and to clarify how these changes could affect the competitiveness of businesses, consumption, and cross-border trade. The content of the questions also assessed the speed of the coordination rounds (three working days), the impact of the altered excise taxes on motor fuel, and measures and revenues related to combating cross-border trade. In the context of the bill's processing, discussion involved excise taxes on alcohol, tobacco, and fuel, and various scenarios and potential risks to consumers and the budget were considered.
Decisions Made 1
A thorough discussion took place, but no decisions were made.
Most Active Speaker
The most active speaker was Lauri Laats (pid 5VNfkRwGZMI), who belongs to the Centre Party faction. His role in this inquiry was a leading figure, and his representation was at the center (other) of the political spectrum.
Esimees Lauri Hussar
AI Summary
On the Riigikogu's second agenda item, a parliamentary question submitted by seven Riigikogu members regarding planned excise tax amendments will be considered, with colleague Lauri Laats presenting it as the presenter.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats said that the Centre Party faction submitted a parliamentary inquiry to the Minister of Finance about planned excise tax changes, stressing that a rise in excise taxes could affect consumption and the competitiveness of businesses and increase cross-border shopping, and that it wants to discuss the topic more thoroughly in the Riigikogu and shed light on it.
Esimees Lauri Hussar
AI Summary
The Speaker Lauri Hussar called Finance Minister Jürgen Ligi back to the Riigikogu rostrum to answer the interpellation.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi emphasized that short coordination periods may lead to substandard legislation, stated that the impact of excise changes on consumers would be modest, and that inflation expectations must not be raised, and he pledged to continue to curb cross-border trade and smuggling and to monitor prices and tax revenues, referring to the 2016 experience of haste and stressing that the current government does not intend to repeat such mistakes.
Esimees Lauri Hussar
AI Summary
The chair thanks, invites questions, and asks Vadim Belobrovtsev to take the floor.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Belobrovtsev said that he supported restrictions on alcohol and tobacco, but the rise in the fuel excise tax is a different matter, because many have to drive a car, and he asked whether the current tax increase will not make life harder and whether people have any optimism at all.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi emphasizes that the tax burden will disappear next year, and the decline in Euribor and real growth in pensions will increase purchasing power, which gives optimism, especially for people with low and middle incomes, and by 2026 there will still be a need to bear an additional burden to restore the tax system.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar turns to Vladimir Arhipov and asks him to come onto the stage.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov criticizes the government's tax policy, arguing that the rise in excise taxes is so small that it does not curb the consumption of alcohol and tobacco, and asks why implement an additional 0.13% fuel tax and other tax increases that divide the country and its people.
Rahandusminister Jürgen Ligi
AI Summary
According to Finance Minister Jürgen Ligi, the aim of excise policy is not to receive expressions of thanks, but to reduce the consumption of harmful goods and to cover the budgetary costs, and for the most part these revenues come from Putin's war and are intended to cover security expenditures, but that money does not go into a mole's hole, but to the state – the aim is a better state, better health and a better environment.
Esimees Lauri Hussar
AI Summary
At the beginning of the speech, thanks are given and Lauri Laats is invited to take the stage.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats argues that raising taxes demonstrates the government's inability to manage the economy, and notes that the tax-burden index has fallen to 63.6 — the lowest result in seven years — and asks why this is so.
Rahandusminister Jürgen Ligi
AI Summary
According to Jürgen Ligi, Estonia's freedom means that the party and the government must not and cannot govern everything, including the economy, and the state must refrain from spending on uncontrolled borrowing and money printing, because we have a free-market economy, taxes are uncomfortable but unavoidable, and in the past spending was increased and a structural deficit was created.
Esimees Lauri Hussar
AI Summary
Chairman Hussar thanks the minister, announces that there are no more questions, opens the negotiations, and asks that the floor be returned to Lauri Laats, the representative of the inquirers.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats thanks and notes that Jürgen left his glasses here and asks for eight minutes' time.
Esimees Lauri Hussar
AI Summary
The Speaker Lauri Hussar asked for three extra minutes.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats claims that increasing excise duties on alcohol, tobacco, and especially gasoline increases costs for end consumers and worsens people's ability to cope, because consumption does not decrease, and the processing of the draft bill took place in a very short round of consultations and lacked thorough analysis.
Esimees Lauri Hussar
AI Summary
The chair, Lauri Hussar, thanked and informed that there are no more requests to speak and that the minister would like to take the floor.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that the opposition argues with the TV screen, not with the facts, and according to official data inflation is about 4% and prices rise mainly due to wage growth, and taxes do not cause a huge price increase, while emphasising the impact of the budget deficit and the pension pillar in relation to previous governments.
Esimees Lauri Hussar
AI Summary
The chair, Lauri Hussar, thanks and ends the consideration of today's second agenda item.