Budget and Tax Policy
Session: The 15th Riigikogu, 6th Session, Information Hour
Date: 2025-10-08 15:43
Participating Politicians:
Total Speeches: 25
Membership: 15
Agenda Duration: 14m
AI Summaries: 25/25 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The fourth question during the Riigikogu information hour focused on budget and tax policy, posed to Prime Minister Kristen Michal by Riigikogu member Helir-Valdor Seeder. Seeder sharply criticized the government's budget plan, arguing that it fuels inflation through tax hikes, increases the debt burden to cover current expenditures, and contains "hot air" and deception, particularly concerning the period after 2027, referencing the new motor fuel tax (ETS2). Seeder requested that the Prime Minister avoid giving the usual demagogic response regarding the tax hump and teachers' salaries.
Prime Minister Michal dismissed the criticism, stressing that the tax burden will actually decrease next year from 36.6% to 35.2%, which he claimed represents the largest tax reduction in history (€780 million). He defended the abolition of the tax hump, calling it a "foolish election promise" implemented by the previous government (Isamaa, Social Democrats, and the Centre Party). In a follow-up question, Seeder focused on the "lame car tax," criticizing the Finance Minister's lack of preparation and asking whether the government was prepared to repeal it. Michal defended the amendments to the car tax, particularly the concessions offered to families with children. Mart Maastik, posing a supplementary question, cast doubt on the government’s promised savings, citing the increase in the number of ministry employees and rising salaries as examples. Michal affirmed that the cuts are, in fact, substantial (totaling €1.4 billion) and provided examples from the administrative reform where the number of employees had been reduced.
Decisions Made 1
Decisions were not made
Most Active Speaker
Helir-Valdor Seeder (a Member of the Riigikogu) initiated the debate and acted as an active critic, posing two lengthy questions concerning the budget and tax policy. His political stance is right-wing (Isamaa party).
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that Riigikogu member Helir-Valdor Seeder would be submitting the day's fourth question to Prime Minister Kristen Michal, concerning budget and tax policy.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that the fourth question is on the agenda, which will be presented by Riigikogu member Helir-Valdor Seeder to Prime Minister Kristen Michal, focusing on budget and tax policy issues.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder sharply criticizes the state budget currently under discussion, alleging that it fuels inflation through tax hikes and increasing the debt burden, contains unrealistic planning aimed at the 2027 elections and a hidden fuel tax, which will lead to a decline in economic well-being, and asks the Prime Minister why the resolution of this budget catastrophe is consciously being left for the next government to handle.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder sharply criticizes the government’s budget and tax policy, alleging that it fuels inflation and debt burden using borrowed money, contains "hot air," and is purely aimed at the 2027 elections. He specifically highlights the hidden motor fuel tax of 330 million euros planned to be collected via the RES (State Budget Strategy), which he argues will lead to the impoverishment of the populace and a decline in corporate competitiveness. He also asks the Prime Minister to avoid bringing up the recurring topic of the tax hump in her reply.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar briefly signaled that the next speaker's time had begun.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder maintained that the elections would take place despite the threatening deluge, but stressed that the next government must immediately begin liquidating the resulting disaster.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal expressed satisfaction that the news of the teachers’ salary increase had reached its destination, but took the opportunity to highlight the government’s achievements in tax policy, announcing the largest tax reduction in history (€780 million) and a decrease in the tax burden from 36.6% to 35.2%. He also confirmed that the so-called "stupid election promise," the tax hump (maksuküür), will be abolished starting in early 2026, essentially providing people with a 13th salary.
Kristen Michal peaminister
AI Summary
Prime Minister Kristen Michal expresses satisfaction that the message concerning the teachers' salary increase has successfully gotten through, but he primarily focuses on praising the government's economic policy. He emphasized the positive impact of abolishing the tax hump, which will bring people an extra amount of money equivalent to a 13th month's salary. Furthermore, he announced that the largest tax cut in history is expected next year, which will see the tax burden drop from 36.6% to 35.2%, while simultaneously confirming that the tax hump created by the previous government must be eliminated.
Esimees Lauri Hussar
AI Summary
Following a brief address, Chairman Lauri Hussar gave the floor to the Prime Minister.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked [the audience/participants] and then handed the floor over to the Prime Minister.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the previous speaker, then gave the floor to Helir-Valdor Seeder so that he could ask a clarifying question.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder sharply criticizes the government's tax policy, calling the abolition of the income tax "hump" an expensive and foolish election promise. Following a response he deemed demagogic, he is now demanding the immediate cancellation of the poorly prepared car tax—a levy he referred to as an "orphan project." He promises that the opposition will definitely repeal this tax should they come to power.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder accuses the opposing side of giving demagogic answers and fixating on the issue of the income tax "hump," the abolition of which will cost taxpayers half a billion euros. He then sharply criticizes the "crippled" car tax, labeling it a cuckoo's egg, arguing that the finance minister who presented the draft legislation was unprepared, while simultaneously promising that this detrimental tax will be repealed once they come to power.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar used a short, specific phrase to signal that the next speaker’s allotted time had begun and they could start their address.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder issued a pointed challenge, asking directly whether the opposing side is prepared to admit their past mistake and support an amendment aimed at overturning the previous decision.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offered his thanks and then formally handed the floor over to the Prime Minister.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal is seeking support for draft legislation that would make the car tax more favorable for families with children and users of minivans, emphasizing that the overall tax burden will decrease by 1.4% next year, leaving citizens with more disposable income. He also sharply criticized the opposition's preference for a progressive income tax and further tax increases, urging them to stop advocating for tax hikes.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal is seeking support for draft legislation that would make the car tax more favorable for families with children (100 euros per child) and for minivan users, characterizing this as need-based relief. He categorically rejects claims that taxes are not decreasing, asserting instead that the tax burden will fall by 1.4 percent, leaving people with more money in their pockets. Furthermore, he criticizes his opponents' backing of a progressive income tax—dubbed the "tax hump"—which he believes is detrimental to the nation's success.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar gave the floor to Mart Maastik, requesting that he ask a supplementary question.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar gave the floor to Mart Maastik so that he could ask a supplementary question.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mart Maastik calls into question the Prime Minister’s cheerful presentation, highlighting the stark contradiction between the promised austerity policy (salary cuts and layoffs in ministries) and the actual reality. This reality includes the implementation of over ten new taxes, while simultaneously, ministerial salaries have risen and the number of employees has increased. He asks how the state can possibly pull itself out of the economic downturn given such expenditures.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mart Maastik casts doubt on the Prime Minister's optimistic budget presentation, highlighting the contradiction between the introduction of new taxes and excise duty hikes and the promised austerity policy, especially since ministries have actually raised salaries and hired more people instead of implementing the promised wage cuts—for example, at the Ministry of Climate—questioning how this kind of increase in state spending helps facilitate economic recovery.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal is optimistic and stresses that the 1.4 percentage point reduction in the tax burden is a reality that will leave approximately 780 million euros more in the hands of private individuals (an average of 1,800 euros per year), significantly boosting consumer confidence and economic activity. He calls for support for the tax amendments, while affirming that fiscal prudence remains the government's priority, pointing to the 1.4 billion euros in cuts already implemented, which encompass both job reductions and a meaningful administrative reform.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal expresses optimism, stressing that the 1.4 percentage point reduction in the tax burden is a fact that will leave individuals with approximately 1,800 euros more per year, thereby stimulating consumer activity and the economy. He also confirms that the government has already implemented an additional 1.4 billion euros worth of cuts, proving that savings are possible through practical management.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offered his thanks and announced that the consideration of the fourth item on the agenda is hereby concluded.