First Reading of the Draft Act on Amendments to the Value-Added Tax Act (661 SE)
Session: The 15th Riigikogu, 6th Session, Plenary Sitting
Date: 2025-10-09 01:15
Total Speeches: 89
Membership: 15
Agenda Duration: 1h 39m
AI Summaries: 89/89 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The agenda item was the first reading of draft bill 661 SE on amending the Value-Added Tax Act, initiated by the faction of the Social Democratic Party and members of the Riigikogu. The aim of the draft bill was to lower the VAT rate on basic foodstuffs (root and vegetables, dairy, meat, grain and fish products, and eggs) from 24% to 9%. The presenter, Lauri Läänemets (SDE), emphasized that food prices in Estonia have risen unprecedentedly in recent years, particularly affecting lower-income families, and that the tax reduction would stimulate domestic consumption and support Estonia's food security and agricultural sector. He criticized the government, which, in his estimation, prefers taking out loans to give financial gifts to the rich instead of supporting the wider population. Diana Ingerainen, representative of the Finance Committee, announced that the committee proposed rejecting the draft bill because there was no certainty that the tax reduction would reach the final consumer, and it would create a deficit of approximately 200 million euros in the state budget. During faction negotiations, the draft bill was supported by SDE, EKRE, and the Centre Party, although the latter two criticized the Social Democrats for previously supporting the VAT increase. The bill was rejected in the vote.
Decisions Made 1
The Riigikogu, acting on the recommendation of the leading committee (the Finance Committee), rejected Bill 661 SE during its first reading. The vote was 37 in favor (21 against). Consequently, the bill was dropped from the legislative procedure.
Most Active Speaker
Lauri Läänemets (SDE) was the rapporteur, who delivered a detailed speech defending the draft bill and answered 12 questions. His political position is left-wing.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller proceeded to agenda item 12, which concerned the first reading of Draft Act 661 SE on amendments to the Value Added Tax Act, initiated by the Social Democratic Party faction and several members of the Riigikogu, and invited Riigikogu member Lauri Läänemets to serve as the rapporteur.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets highlights the unprecedentedly high food prices in Estonia, a situation exacerbated by the 24% VAT—one of the highest rates in Europe. He is introducing a draft bill aimed at lowering the VAT rate on basic foodstuffs to 9%. This measure is essential for improving the financial resilience of lower-income individuals, stimulating domestic consumption, and strengthening the competitiveness of Estonian food producers. It offers a more compassionate and economically sound alternative to the government’s current fiscal policy.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller offered brief thanks and then interjected before the questioning began, urgently demanding the floor for a point of order, while simultaneously asking Peeter if he had violated protocol.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits accuses the opposition representative of deliberately placing two crucial bills—the VAT on foodstuffs and the car tax for disabled people—under the cover of darkness to avoid widespread coverage of these issues, and demands an explanation regarding the motives behind such action.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller described the process of adopting the decision, noting that the action originated from a commission proposal, was approved by the board, and was assigned a number according to the current numbering system. He then gave the floor to Aleksandr Tšaplõgin to ask a question.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksandr Chaplygin praised the previous speaker’s admirable and sincere desire to lower the VAT on foodstuffs, but immediately posed a pointed question: why he had not supported the same proposal when it was put forward by the Centre Party faction.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets emphasized that addressing the issue of lowering the VAT on foodstuffs was a priority for the Social Democrats, something they had been working on since September 2024. He also hinted that this very topic might have been the reason they were ousted from the government, while simultaneously promising to definitely continue pursuing the matter.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller called upon the next speaker, Reili Rand, to speak.
Reili Rand
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Reili Rand challenged the governing coalition parties to explain their dogmatic opposition to the bill, which has garnered widespread support and been successfully implemented elsewhere, and to the progressive income tax. She asked what makes Estonia so special that a fair and people-caring tax system should not support people's livelihoods and the economy here.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets sharply criticizes the Reform Party, accusing them of disregarding the constitutional value of justice and focusing solely on rights and freedom. He argues that the party's "every man is the architect of his own fortune" mentality deepens socio-economic injustice, which could send the country into a tailspin. Furthermore, the speaker accuses the government of pursuing a panic-driven and incompetent fiscal policy, taking out loans only to distribute money to the wealthier segment of society. He views this as an unprecedented attempt to cling to power at any cost and "teach the opposition a lesson."
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller and Jaak Aab were called to the podium to deliver their presentation.
AI Summary
Jaak Aab finds the Finance Minister's repeated assertion regarding the economic neutrality of VAT peculiar, stressing that lowering the VAT on foodstuffs is essential for supporting Estonian food producers and pushing back against cheap imports. He casts doubt on the Reform Party's fear that this would increase the budget deficit, instead asking whether it might actually have a positive effect.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets disputes the government’s exaggerated estimates concerning the negative budgetary impact of lowering the VAT on foodstuffs. He stresses that the actual cost (approximately 170 million euros) is significantly lower, as the reduction only applies to basic necessities. Moreover, he notes that this figure is comparable to the amount of support planned for the wealthiest. Consequently, reducing the VAT would have a minimal effect on the budget but a substantial positive effect on people's ability to cope and on Estonian entrepreneurs.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller and Tanel Kiik were called to the rostrum to begin their address.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik endorses the draft legislation aimed at lowering the VAT on foodstuffs. This move aligns with the European Union's policy of applying lower taxation to essential goods to make the consumer shopping basket more affordable. Nevertheless, he proposes that the Social Democrats consider initially piloting the measure for a fixed term. This would serve to mitigate concerns regarding the sources of funding and allow verification that the price reduction genuinely benefits the consumer.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets supports Toomas Luman’s sensible proposal to consider reducing the VAT on foodstuffs, emphasizing that if there are doubts, it should be implemented temporarily and for a fixed term, in order to analyze its effectiveness and make necessary adjustments. He calls on the Reform Party to heed Luman’s advice and cites Sweden as an example, where state mechanisms ensure that the tax benefit actually reaches the consumer.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller. Helmen Kütt was invited to speak, but the content of her address has not been presented.
Helmen Kütt
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Helmen Kütt praised the presentation and stressed that the draft legislation is beneficial to the Estonian people and local governments, particularly in simplifying the organization of school meals. However, she posed a question to the government representative: whether the Prime Minister had convened entrepreneurs and merchants for a round table discussion to thoroughly address the issue and reach a goodwill agreement, rather than relying solely on indirect sources.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets sharply criticizes the Prime Minister and the Reform Party, who have failed to address the issues of people's livelihoods and lowering food prices, instead accusing entrepreneurs of excessive greed and the construction of large commercial spaces. He emphasizes that the real responsibility for failing to establish the framework of a market economy rests with the parties that have been in government for decades, and he finds that the government’s criticism directed at large stores is illogical and offers no solution for reducing prices.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller and Aleksandr Tšaplõgin were called to the podium by the moderator to deliver their presentation.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksandr Tšaplõgin rejected the rapporteur's assertion that the matter was simply a request by the Centre Party to reduce the VAT on foodstuffs, emphasizing that he had personally introduced a draft law aimed at lowering the VAT specifically on Estonian fruits and vegetables, a measure which the opposing side failed to support, and he subsequently accused them directly of lying.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets believes that previous food policy discussions focused too little on fruits and vegetables, and he explains that in the government, they proposed extending the electricity price subsidies—which were originally intended for energy-intensive large industries—to cover the food industry as well, particularly vegetable cultivation. This is because cheaper electricity is vitally necessary to ensure the competitiveness of local produce (such as winter cucumbers and tomatoes) against imported Finnish goods.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller next called Züleyxa Izmailova to the podium.
Züleyxa Izmailova
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Züleyxa Izmailova first drew attention to the fact that Estonia, as a member of the European Union, cannot directly favor domestic production through taxation. However, she then focused on the question of why the Reform Party has abandoned the core right-wing political principle of lowering taxes and increasing purchasing power, despite the fact that the idea of reducing VAT on foodstuffs actually has many supporters within the party.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets sharply criticizes the government’s financial and economic policy, labeling it the worst and most irresponsible in the history of the Republic of Estonia. He points out that they are increasing expenditures while simultaneously decreasing revenues despite operating with a deficit budget. He attributes this to management driven by rating concerns, warning that it will lead to painful consequences for the entire nation in two years, and serves as a clear indication that the government is in chaos and a state of mental disarray.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller was followed by Raimond Kaljulaid, who was then given the floor.
Raimond Kaljulaid
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Raimond Kaljulaid is requesting a specific clarification regarding the definitions of staple foods and secondary foodstuffs within the context of the draft bill. He cites Lotte corn sticks as an example, inquiring whether this cereal product qualifies as a staple food, given that voters are interested in precisely these kinds of details.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets explains that the VAT reduction applies only to basic foodstuffs (meat, bread, dairy products, vegetables), not luxury items like corn puffs. He stresses that this measure is critically necessary for those who need assistance, citing examples of people who are forced to spend only 150 euros a month on food and consequently cannot afford healthy meals or new clothes for their children. At the same time, he criticizes the proposed state budget, which instead directs large sums toward supporting the wealthiest 10%, who do not actually require this aid.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller and Annely Akkermann were invited to the speaker's stand to deliver their presentation.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann refuted the critic's claim that the government was taking out a loan merely for handouts, explaining that of the 1.6 billion euro loan, 1.3 billion is directed toward investments and 1.2 billion toward defense expenditures, which exceed the level required by NATO. She emphasized that the loan does not cover current fixed operating costs.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller limited himself to a brief procedural remark, announcing that the allotted speaking time had begun.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann confirms that the principle of a single president applies in Estonia, stressing through analogies (a ship, a car) that leadership must be unified, and subsequently addresses the activities of the Social Democrats.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller concluded his address simply with a brief expression of thanks, thereby signaling the end of his presentation or contribution.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
In her presentation, Annely Akkermann addressed the technical aspects of budget drafting, stressing the necessity of performing accurate VAT calculations.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller gave a brief and clear cue that the speaking time for the next speaker or participant had begun.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann expresses clear condemnation, stressing that a certain situation or activity within the Ministry of Agriculture is, in her view, completely unacceptable.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller responded concisely, acknowledging that the attention or praise he had received was perhaps excessive, but he nevertheless expressed his sincere gratitude.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets begins by acknowledging a Reform Party member interested in lowering the VAT on foodstuffs, but quickly transitions to sharp criticism regarding the government's budget policy and social irresponsibility. He cites a deficit of nearly 2 billion euros, the incorrect classification of defense expenditures, and especially the fact that, during the cost of living crisis, the wealthier are supported while those in distress are neglected, calling such an approach unprecedentedly irresponsible.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller gave the floor to Madis Kallas, inviting him to the podium.
Madis Kallas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Madis Kallas praises all political parties for bringing up the issue of food prices, but criticizes them for keeping the focus on political competition, emphasizing that for the public, only the outcome matters. He also questions whether the bill's initiators have communicated with the coalition to find a unified solution for lowering the cost of the food basket.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets expresses his conviction that although several coalition MPs, such as Annely Akkermann and Mart Võrklaev, are critical of the government's budgetary plans and feel internal dissatisfaction, the party will not allow them to take any further steps, because the Reform Party's main concern is not the Estonian economy or people's livelihoods, but rather the party's approval ratings.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller concluded the Q&A session, thanked the participants, and then gave the floor to Diana Ingerainen, a member of the Finance Committee, to continue with the agenda and provide an overview of the discussion that took place in the lead committee.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen, representing the Finance Committee, provided an overview of the debate surrounding the draft bill concerning the reduction of VAT on foodstuffs, a measure with an estimated budgetary impact ranging from 200 to 400 million euros. She further reported that although the committee had unanimously decided to place the bill on the plenary session's agenda, a subsequent majority vote (five in favor, three against) supported the motion to reject the bill.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller concluded his segment, thanked the audience, and gave the floor to Rain Epler to answer questions.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler draws attention to the contradictory stance of the government and the central bank regarding the impact of VAT, questioning why the Reform Party is convinced that while a VAT increase is passed on to prices, a reduction does not reach the consumer, and how this logical flaw is justified.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen provided an overview of the discussion held in the commission regarding the reduction of VAT, emphasizing the international examples cited by experts from the Ministry of Finance, which confirm that despite the proportion of VAT (roughly one third of the price), there is absolutely no guarantee that the reduction will be reflected in the final price paid by the consumer.
Aseesimees Arvo Aller
AI Summary
After a brief introduction, Deputy Chairman Arvo Aller gave the floor to Jaak Aab, inviting him to the podium.
AI Summary
Jaak Aab inquired whether the long-term impact of a reduced VAT rate on basic foodstuffs had been addressed either by the Commission or the Ministry of Finance, emphasizing that, in addition to the short-term budgetary effect, analysis should also cover how such a measure would affect businesses and farmers in the sector, by creating jobs and increasing investment capacity, which could actually boost the budget in the medium term.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen thanked the questioner and briefly clarified that the topic in question had not been addressed previously to the extent referenced by the questioner.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller's remarks consisted solely of inviting Raimond Kaljulaid to the podium, without the actual content of his speech ever being presented.
Raimond Kaljulaid
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Raimond Kaljulaid asks the rapporteur to explain the underlying reasons for the committee's decision to reject the proposal aimed at lowering food prices. Furthermore, he demands that the official minutes clearly show the justifications and the names of those who voted in favor of rejecting the proposal.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen provided an overview of the voting results, where the majority supported rejecting the proposal. The main reason cited was that lowering VAT would create a shortfall of nearly 200 million euros in the state budget, while there is no guarantee that this price reduction would actually reach the end consumer.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller gave the floor to the next speaker, inviting Züleyxa Izmailova to the podium.
Züleyxa Izmailova
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Züleyxa Izmailova corrected the waiter’s inaccurate information regarding Finland’s more favorable VAT rate on food and requested clarification on the contradiction: specifically, why the waiter’s political party views the resulting decrease in state budget revenue as an impediment to lowering the VAT on foodstuffs, yet simultaneously initiates the reduction of the gambling tax, which also diminishes the state budget.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen explained that she was referring to Finland's half-percent cut plan and the discussion of it, stressing that no other topic was addressed in the commission.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invited Rain Epler to the podium and gave him the floor.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler recalls Madis Aben’s earlier economic forecasts but focuses on the question of whether, during the discussions about lowering VAT, additional measures were also considered—such as the price monitoring and publication system used in Portugal—to ensure the tax cut was fully passed on to consumer prices, also referencing Germany’s positive experience.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller confined himself to a short and specific cue, which notified the presenter that his allotted time had begun.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen thanked the audience but emphasized that the topic at hand had not been discussed by the commission in that specific form.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller gave the floor to Tanel Kiik.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik sought clarification from the Finance Committee as to why the proposal by Toomas Luman, head of the Chamber of Commerce and Industry, was left undiscussed—specifically, the suggestion to initially implement a temporary reduction in VAT on foodstuffs to test its impact. He also inquired about the actual role and influence of Eesti 200 within the coalition, given the dominance of the Reform Party.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen explained that both Toomas Luman's proposal and the topic concerning the boatswains were left undiscussed at the Finance Committee meeting in question.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller and Lauri Läänemets were called to the rostrum to deliver their addresses.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets stresses the necessity of substantive analysis, rather than merely relying on opinions, and asks the Ministry of Finance directly whether, concerning the reduction of VAT on foodstuffs, the committee was presented with research on the experiences and implementation plans of other countries that had planned similar measures.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen reported on the Finance Committee discussion where Madis Aben and Aet Külasalu presented the Praxis analysis regarding the impact of tax increases on the poorer population, emphasizing that the most effective measure for assisting single parents and single pensioners is the allocation of direct benefits, since a general tax reduction would not yield the desired result.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller gave the floor to Tiit Maran.
Tiit Maran
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tiit Maran challenges the justification for rejecting the draft bill, which centered on the uncertainty of the price reduction reaching the final consumer. He points out that all neighboring countries are either considering or have already implemented a reduction in VAT on foodstuffs, and he asks why Estonia’s analysis differs so significantly from that of other countries and whether international comparisons were considered.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen highlighted that although transferring the effect of a medicine from one location to another seems logical at first glance, international long-term (3–5 year) experience has shown that the expected impact, such as a significant drop in prices, has not actually materialized, despite earlier presentations.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller. Helmen Kütt was given the floor.
Helmen Kütt
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Helmen Kütt emphasizes that a useful debate requires the involvement of multiple parties, and asks the presenter whether representatives of merchants and entrepreneurs, including Oleg Kross, were also invited to the committee discussion, since it is not sensible to talk over those who are often accused of profiteering.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen noted that although the engagement round was not carried out by the relevant committee, she did not perceive any accusatory attitude from the participants regarding the matter.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller gave the floor to Madis Kallas, inviting him to the podium.
Madis Kallas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Madis Kallas inquired how the commission had addressed the positive feedback (especially from the Chamber of Agriculture and Commerce) concerning the functioning of the proposed measure in Estonia. Having received that response, he further asked whether alternative proposals for reducing food prices, submitted by other political parties or commission members, had also been under discussion.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen stressed that limiting food prices is extremely complicated under open market conditions, which is why people who suffered the most from the tax increase should be helped through targeted direct support aimed precisely at those who need it.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller Lauri Läänemets was invited to the speaker's stand to begin his presentation.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets emphasizes the widespread public support for lowering the VAT on foodstuffs, noting that the government is isolated on this issue. He reiterates his question as to whether the Ministry of Finance has submitted comprehensive analyses to the commission and studied the experiences of neighboring countries (Finland, Sweden, Latvia) regarding the implementation of the VAT reduction, suspecting that the ministry's position is based on outdated information or mere opinion.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen highlighted analyses from the Ministry of Finance which indicated that reducing VAT on foodstuffs in other countries has not had a long-term impact on prices. She also stressed that, even during meetings with food producers and retailers, she did not sense a consensus that the VAT reduction would be passed on to final consumer prices.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller concluded the round of questions, opened the floor for faction debates, and first gave the floor to Züleyxa Izmailova, the representative of the Social Democratic Party faction.
Züleyxa Izmailova
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Züleyxa Izmailova sharply criticizes the Estonian government's refusal to lower the VAT on foodstuffs, which is exceptionally high in the context of the European Union. She emphasizes that this policy undermines the purchasing power of Estonians, harms local agriculture and food security, and makes Estonia an unattractive tourist destination at a time when neighboring countries are actively cutting taxes. Therefore, lowering the VAT is essential for halting the inflation spiral and stimulating the economy.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller briefly announced that he needed three extra minutes for his presentation or the discussion.
Züleyxa Izmailova
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Züleyxa Izmailova is calling for support to lower the value-added tax (VAT) on basic foodstuffs, stressing that this is a crucial first step toward breaking the spiral of price increases and curbing inflation. She dismisses concerns about a reduction in budget revenue, explaining that due to the low savings rate among Estonian residents, the money saved immediately flows back into consumption, thereby restoring tax receipts through circular consumption. Furthermore, the measure simultaneously strengthens domestic food production and boosts purchasing power.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller gave the floor for the next round of speeches to Rain Epler, the representative of the Conservative People's Party of Estonia faction, noting that he had been allocated three additional minutes.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler supports the bill put forward by the Social Democrats to lower the VAT on foodstuffs, but he dedicates a significant portion of his speech to criticizing the political hypocrisy of the Reform Party and the Sotsid. He refutes the Reform Party’s claims that direct subsidies are preferable and that a tax cut would have no impact on prices, citing examples from Europe where monitoring price changes ensured the reduction was passed on to consumers. Furthermore, he accuses the Social Democrats of having previously voted against similar bills and having supported raising the VAT themselves, thereby calling into question their genuine commitment to the bill’s passage.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller Lauri Laats spoke on behalf of the Estonian Centre Party faction, according to the speaker's introduction.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats requested three minutes of extra time, both just in case and as a precautionary measure.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller briefly requested three minutes of extra time.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats is accusing the Social Democrats of hypocrisy concerning their proposal to lower the VAT on foodstuffs. He points out that it was the Social Democrats themselves, together with the Reform Party and Eesti 200, who, while in government, raised numerous taxes and excises, including income tax, VAT, and the car tax. Laats emphasizes that the public's current financial struggles are the direct result of their previous tax-hike policy, which renders their current accusations of government incompetence hypocritical.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller closed the debate, announced the leading committee’s proposal to reject Bill 661 at the first reading, and asked the members of the Riigikogu to immediately state their position on the motion and cast their votes.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller announces that, since 37 members of the Riigikogu voted in favor of the draft bill and 21 voted against, it was rejected and consequently dropped from the proceedings, thereby concluding the consideration of the 12th item on the agenda.