Budget and Tax Policy
Session: The 15th Riigikogu, 6th Session, Information Hour
Date: 2025-10-08 15:43
Participating Politicians:
Total Speeches: 12
Membership: 15
Agenda Duration: 14m
AI Summaries: 12/12 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
Today's fourth question concerned budget and tax policy, which was posed to Prime Minister Kristen Michal by Riigikogu member Helir-Valdor Seeder. Seeder criticized the government's draft budget, accusing it of fueling inflation, increasing the debt burden, and fulfilling a "stupid election promise" (referring to the abolition of the tax hump). He also pointed out that the budget strategy plans for revenue (€330 million after 2027) from the ETS2 system, which the government allegedly does not support, deeming this a deception. Seeder asked the Prime Minister to avoid repeating talk about the tax hump and teachers' salaries, as this is a repetitive and tiresome topic.
Prime Minister Michal responded that abolishing the tax hump is a positive step that leaves more money in people's hands (€1,800 annually for those on the average salary). He categorically rejected claims of tax increases, emphasizing that the tax burden will actually fall from 36.6% to 35.2%, which represents the largest tax reduction in history (€780 million). In a follow-up question, Seeder focused on the car tax, criticizing its preparation and asking whether the government was ready to cancel it. Michal defended the car tax, highlighting the concessions for families with children and for minivans. Finally, Mart Maastik asked about the government's promised savings and cuts, pointing to salary increases and the growth in the number of employees across ministries. Michal confirmed the need for savings, but emphasized previous cuts (€1.4 billion) and provided examples of the success of the administrative reform.
Decisions Made 1
No decisions were made
Most Active Speaker
Helir-Valdor Seeder was an active questioner, submitting two lengthy and critical questions concerning budget and tax policy, focusing specifically on the abolition of the tax hump and the car tax. His position was right-wing.
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.
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.
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 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.
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.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar gave the floor to Mart Maastik, requesting that he ask a supplementary question.
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 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.