First reading of the Draft Act on the Amendment of the Act on Simplified Taxation of Business Income and the Income Tax Act, and the Act on the Repeal of the Security Tax Act and the Amendment of the Income Tax Act (Bill 734 SE)
Session: 15th Riigikogu, 6th Session, Plenary Sitting
Date: 2025-10-13 18:42
Participating Politicians:
Total Speeches: 101
Membership: 15
Agenda Duration: 1h 3m
AI Summaries: 101/101 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu held the first reading of Draft Law 734, initiated by the Government of the Republic, concerning the Act on Simplified Taxation of Business Income, the amendment of the Income Tax Act, the Act on the Repeal of the Security Tax Act, and the amendment of the Income Tax Act. Minister of Finance Jürgen Ligi introduced the draft law, the main objective of which is to improve the competitiveness of the Estonian tax system by abandoning the previous coalition's planned increase of the income tax rate to 24% (leaving it at 22%). Furthermore, the 2% taxation of all private individuals' income will be cancelled. Ligi emphasized that foregoing the tax hike and eliminating the tax bracket distortion will put nearly 1,848 euros more per year into the hands of the average wage earner. Additionally, the income tax exemption for donations to NGOs assisting Ukraine will be extended until the end of 2027.
The debate was emotional and focused on fiscal responsibility in tax policy. The opposition (Isamaa, EKRE, SDE) criticized the government for tax policy "flip-flopping" and deepening the budget deficit, arguing that the tax cuts were being financed by borrowed money. Urmas Reinsalu (Isamaa) highlighted the record negative net position of foreign investments in 2024, which Ligi disputed. Social Democrats (Riina Sikkut, Anti Allas) accused the government of short-sightedness and decisions driven by populism that harm the nation's finances. Ligi, in turn, defended the draft law for its economy-stimulating effect and criticized the idea of lowering VAT on foodstuffs as a foolish and socially misdirected policy.
Decisions Made 3
The Finance Committee proposed concluding the first reading of Bill 734 (seven in favour, one against).
The first reading of Bill 734 has concluded.
The deadline for submitting amendments was set for October 27th at 5:15 PM.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that the agenda includes the first reading of the substantial tax package initiated by the Government of the Republic (Draft Bill 734), which covers the simplified taxation of business income and the repeal of the security tax, and asked Minister of Finance Jürgen Ligi to present the draft bill to the Riigikogu.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that the first reading of Bill 734, initiated by the Government of the Republic, was on the agenda. The bill concerns the simplified taxation of business income and the repeal of the security tax. He then asked Finance Minister Jürgen Ligi to present the bill to the Riigikogu.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi introduced a draft bill aimed primarily at revitalizing the economic environment and enhancing competitiveness. The bill achieves this by revoking the tax increases planned by the previous coalition, specifically the proposed hike in the income tax rate to 24% and the 2% taxation of private income starting from the first euro. Furthermore, the current 22% income tax rate and the unified 700-euro tax-free income threshold will remain in force, while the income tax exemption for donations made to aid Ukraine will simultaneously be extended until the end of 2027.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi is introducing a bill that cancels the tax hikes planned by the previous coalition, keeping the income tax rate at 22% and eliminating the 2% tax on the first euro. This move aims to improve the economic environment and ensure the average wage earner retains nearly 1,848 euros annually. Furthermore, the bill simultaneously extends the income tax exemption for donations assisting Ukraine until the end of 2027.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the minister for his presentation and opened the floor for questions, giving the floor first to Peeter Ernits.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the minister, noting that there were still questions, and subsequently gave the floor to Peeter Ernits.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits did praise the bill for its haiku-like brevity, but he criticized the fact that it didn't include a reduction in VAT on foodstuffs, stressing that this necessity is likely far greater than the points currently contained in the draft, such as enabling donations to Ukraine.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits acknowledges the bill's brevity and haiku-like form, but criticizes the omission of lowering the VAT on foodstuffs, arguing that its necessity is, in his estimation, significantly greater than the currently debated topics concerning Ukraine donations and tax progression issues.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi sharply criticizes the idea of reducing VAT on foodstuffs, calling it a foolish and socially misguided tax policy decision. He stresses that the VAT rate plays only a very indirect role in determining final prices, and that the competitiveness of nations depends more on the overall tax burden than on a measure that drains the state budget.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stresses that reducing VAT on foodstuffs is a foolish and socially misdirected tax policy decision, as it neither improves the economic environment nor competitiveness, and the VAT rate actually plays a very indirect role in final price setting, which is why foregoing state budget revenue will not automatically result in lower prices for the consumer.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar called Henn Põlluaas to the podium, granting him permission to make a statement.
Henn Põlluaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Henn Põlluaas welcomes the cancellation of the income tax hike, seeing it as a measure aimed at revitalizing the economy. Yet, he expresses puzzlement as to why a VAT reduction wouldn't achieve the same outcome. He also casts doubt on why the tax concession designed to aid Ukraine is extended to only eight non-profit organizations (NGOs), emphasizing that a broader tax exemption would allow for much better support for Ukraine.
Henn Põlluaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Henn Põlluaas lauds the decision to scrap the income tax hike, calling it an economy-boosting measure, but he raises doubts as to why a reduction in Value Added Tax (VAT) would not achieve the same effect. Crucially, he criticizes the government’s decision to grant income tax exemption to only eight NGOs supporting Ukraine, emphasizing that broadening this tax relief would provide significantly better assistance to Ukraine.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi sharply criticizes both the reduction of VAT—which he argues does not improve the economy's competitiveness but is a politically motivated move that international experts (OECD, IMF) strongly advise against—and widespread tax incentives (including those for NGOs), since they are difficult to manage, easily abused, and rarely achieve their actual purpose, meaning they must be implemented with extreme caution.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi sharply criticizes the lowering of VAT and tax incentives more broadly, emphasizing that these steps contradict the recommendations of international experts (OECD, IMF), do not improve the economy’s competitiveness, but are rather the result of political parties vying for popularity. He adds that these measures create schemes in the supply chain, are difficult to manage, and are often abused, which is why extreme caution should be exercised when keeping tax incentives in check.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invited Aivar Kok to the podium.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk criticizes the support for the draft bill, which, according to the State Budget Strategy (RES), will create a 264 million euro hole next year, and demands a concrete plan from the government on how this lost revenue will be covered, while also asking why this maneuvering is necessary at all, especially considering the already existing income tax exemption for high earners, which costs half a billion euros.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk is questioning support for the draft bill, but primarily demands an explanation of how the government intends to cover the €264 million deficit projected in the State Budget Strategy (RES) for next year, which stems from unrealized revenue and increased expenditure, citing, for instance, the income tax exemption for high earners.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi addressed the complexity of managing benefits, noting that an exception had been made due to the war in Ukraine, and defended his tax policy choices, emphasizing that income tax is the most burdensome for the economy. He also sharply criticized the tax hump created by the opposition (Isamaa/Res Publica), calling it an aberration that is an increasingly expensive propagandistic element funded by the budget deficit, rather than a genuine tax policy measure.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi defended the complexity involved in administering tax concessions, citing the war in Ukraine as an exceptional circumstance. However, he mainly focused on highlighting income tax as the most burdensome levy on the economy. He also sharply criticized the "tax hump" introduced by previous governments (Isamaa/Res Publica), labeling it a deformity of the tax system and an element borrowed from the propaganda industry, noting that its removal is becoming increasingly costly.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar and Jaak Aab were called to the lectern to deliver their presentation.
AI Summary
Jaak Aab is raising the issue of the broader impact of tax policy decisions, criticizing the permanent establishment of the VAT increase and challenging the minister's assertion that it will not damage competitiveness. He points to concerns from the agriculture and food sector, whose assessment is that higher prices will reduce investment and encourage foreign imports.
AI Summary
Jaak Aab is criticizing the government coalition's decision to make the VAT increase permanent, not temporary. He also casts doubt on the minister's position that this will have little effect on the economy and competitiveness, citing concerns from representatives of the agriculture and food sector who believe the higher VAT hinders their investment capacity and encourages the preference for foreign products.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi referenced the OECD's position, emphasizing that corporate income tax and labor taxes are the most detrimental to economic growth, whereas VAT has a neutral effect, and land tax, being a tax on a limited resource, actually stimulates the economy, thus pointing to the necessity of redistributing the overall tax burden.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi cited OECD authorities to stress the onerous nature of taxes on the economy, identifying corporate income tax and labor taxes as the most detrimental. Meanwhile, the impact of VAT on economic growth is neutral, which makes it particularly suitable for an export-dependent country such as Estonia. Furthermore, he supported the introduction of a land tax, as taxing a limited resource is considered an economy-stimulating measure.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar called Peeter Ernits to the podium, but the actual content of his address is missing from the text that was submitted.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits criticizes the government's priorities, emphasizing that lowering the VAT on foodstuffs would be more important for the Estonian people and the poor than assisting Ukraine with emergency aid and donations. He also proposes adding the "Slava Ukraini" brand, known in the context of the Refugee Aid scandal, to the list of ongoing investigations.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits criticized the government, accusing it of resisting the lowering of VAT on foodstuffs—a measure that would help Estonia’s poor and vulnerable—while prioritizing aid to Ukraine over assisting its own population. He also made the ironic suggestion that the "Slava Ukraini" (Glory to Ukraine) slogan should be added to the list of aid scandals currently under investigation, so that someone could continue providing assistance under that banner.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi is distancing himself from the political circus, offering better governance instead, and stressing that the costs of facilitating aid to Ukraine are negligible compared to domestic tax breaks. He also criticizes the petty attitude, arguing that the survival of Ukraine and the defeat of Russia is an absolutely fundamental issue for Estonian security.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi rejects political populism and emphasizes the need for better governance, while sharply criticizing the mindset he deems petty—a mindset that pits the negligible cost (a couple of million) of facilitating aid to Ukraine against the massive expense (half a billion) of reducing VAT on food, arguing that Ukraine's survival is absolutely fundamental to Estonia's security.
Esimees Lauri Hussar
AI Summary
Helle-Moonika Helme was called to the speaker's stand by Chairman Lauri Hussar to deliver her presentation.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme agrees with the minister that tax issues must be handled with extreme caution, but she doubts the government's diligence, pointing out a contradiction: the NGO Estonian Refugee Council (Eesti Pagulasabi), which reported a large profit (nearly 4 million euros), has been included in the list of tax benefit recipients, while other funds that help the Estonian people have been left off. She questions whether sufficient caution was truly exercised when compiling the list.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme agrees with the minister that tax changes must be approached with extreme caution, but she then calls into question the list of favored NGOs, pointing out that Eesti Pagulasabi (Estonian Refugee Aid), which has large profits and high salaries, is among those receiving tax exemption, while the cancer treatment fund, which helps Estonian people, has been left off the list, rhetorically asking whether sufficient caution was truly exercised when these selections were made.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi expresses doubt regarding the absence of tax benefits for the Cancer Treatment Fund. He clarifies that in the case of non-profit organizations (NGOs), it is appropriate to speak of income and cash flow, not profit, and defends the salary level of the organization's head (approximately 2,400–2,500 euros), arguing that for a position responsible for a large cash flow in the capital city, this is not generous but rather below average.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi disputes the claim that the cancer treatment fund is not among those receiving favorable treatment. He explains that in the case of NGOs, it is correct to speak of cash flow, not profit, and notes that the salary of the executive director at a non-profit organization operating in the capital (approximately 2,400–2,500 euros) is not generous, but rather below average.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar gave the floor to Rain Epler, inviting him to speak.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler asked the Minister of Finance to confirm that the bill concerning the cancellation of the income tax increase is not merely a pre-election gimmick that will be shelved after Sunday’s elections, but that its processing will be carried through to a certain and successful conclusion, with full conviction and commitment.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler asked the Minister of Finance to provide a firm assurance that the ongoing process regarding the income tax bill is not merely a pre-election stunt that will be shelved after the elections, but that it will be carried through with full commitment to a successful conclusion.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi, who took charge of state finances in July, confirms that this is a draft bill. However, he expresses sharp disappointment regarding the tax elements agreed upon in the coalition agreement (such as taxing all income starting from zero and the parallel taxation of business income), stating that he learned about the painful compromises too late to intervene, even though he should have been supporting them.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi confirmed that this is a draft bill, not a trick, but emphasized that several tax elements are unacceptable to him, particularly the taxation of all income starting from zero and the parallel taxation of business income. Although he did not participate in the negotiations, he expressed disappointment over the results of the painful compromises, admitting that he learned about some matters too late to intervene.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invited Urmas Reinsalu to the podium to begin his presentation.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu criticizes the Minister of Finance, stating that the government's 15 months of tax policy uncertainty and inconsistency have damaged confidence in the Estonian economy. This, he argues, has led to a dividend panic and a historically record-high negative net foreign investment position of 3.5 billion euros. He asks directly whether the government's actions were specifically the cause of this catastrophe.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu is accusing the Minister of Finance and the government of 15 months of erratic tax policy shifts, which have damaged economic confidence, triggered a dividend panic, and resulted in the most negative net foreign investment position in Estonia's history. He asks directly whether the government’s unstable policy is the cause of this extensive damage.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi accuses the opposition of economic illiteracy and the deliberate manufacturing of a negative mood, charging them with tax policy spasms and misreading balance of payments data. He emphasizes that the net foreign investment position is actually positive, notwithstanding contrary claims that ignore the figures and suffer from methodological deficiencies.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi accuses his opponent of creating negative sentiment through tax policy jolts and of misinterpreting economic indicators, particularly the balance of payments. He stresses that the overall status of foreign investments is actually positive, and criticizes the opposing side for using sentiment researchers instead of economic analysis to construct a negative narrative, demonstrating economic illiteracy.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar was Jaak Aab, who was asked to proceed to speak.
AI Summary
Jaak Aab clarifies that although the Social Democrats have theoretically considered wealth taxes and property taxes, the goal is not a broad tax increase, but rather the increased taxation of wealthier individuals to cover national defense expenditures necessitated by the security situation, emphasizing that primary residences would remain untaxed and that such taxes would have the minimal impact on the economy's competitiveness.
AI Summary
Jaak Aab rejected accusations that the Social Democrats were planning widespread tax hikes, clarifying that the SDE has only theoretically discussed implementing a wealth tax and a property tax aimed solely at wealthier individuals to fund national defense investments, while emphasizing that a person's primary residence would remain untaxed.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi is defending his position that the Social Democrats are behind raising income tax and implementing a 2% parallel tax on businesses, emphasizing that this is a political choice made by their party. He rejects accusations of launching an unfair attack, pointing instead to the opposition leader's previous verbal assault.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi is defending his earlier remarks, confirming that he did not make a mistake at the podium, and emphasizes that the opposing side is the author of the political choice to raise income tax and burden companies with a 2% special income tax, which, as a demand by the Social Democrats, is entirely consistent with their party’s name.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar and Urmas Reinsalu were invited to speak.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu, observing the addressee's emotional reaction, demands a clear answer from the Minister of Finance as to why Estonia was the only EU Baltic Sea country in 2024, according to World Bank data, whose net inflow of foreign direct investment (FDI) was a record negative figure (–3.5 billion euros), requesting a detailed explanation for this historically large negative entry and the reasons for the fluctuation compared to previous years.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu criticizes the opposing side's emotional reaction to specific data and urgently demands an explanation from the Minister of Finance as to why Estonia was, according to World Bank data in 2024, the only EU country bordering the Baltic Sea whose net foreign investment inflow position was a record negative (–3.5 billion euros), asking what caused this historically large negative fluctuation compared to neighboring countries and previous periods.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi sharply rejected criticism regarding the alleged outflow of foreign investments and the negative economic figures, explaining that the negative indicators are largely statistical noise, paper transactions, or changes in the financial account, which effectively cancel out the alleged deficit. He emphasized, however, that the actual growth of foreign investments has continued. He deemed the discussion comical, accusing former Prime Minister Jüri Ratas of initiating the budgetary policy problems, and ultimately pointing to the sharp increase in defense spending, necessitated by changes in US foreign policy, as the main reason for the current deficit.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi considers the debate over the alleged massive outflow comical, emphasizing that negative account balances are primarily accounting anomalies resulting from individual transactions (such as the relocation of offices), not a fundamental problem, given that foreign investments are actually increasing. He points out that the accumulation of the budget deficit began already during the time of previous governments due to changes in fiscal rules, which was then exacerbated by crisis expenditures and defense costs that grew under the influence of US foreign policy.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar handed the floor over to Anti Allas.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas explained that the Social Democrats are not populists and support lower taxes, but he emphasized the necessity of taxes to ensure social justice and secure access to education and healthcare for poorer families. At the same time, he sharply questioned the Minister of Finance, asking whether, given the current security situation, the mass, tax-free acquisition of speedboats by companies should be allowed—boats that could be used to flee the country in case of war, thereby leaving national defense to be borne by the poor.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas emphasized that, unlike populists, social democrats support taxes aimed at ensuring social equality, and posed a pointed question to the Minister of Finance: whether, in the current security situation, it is ethical and justified to keep the mass purchase of corporate speedboats tax-exempt, allowing the rich to flee in case of war, while leaving national defense to be borne by the poor.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar gave a brief and specific signal that the time for the next speaker or participant had begun.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi is criticizing the Social Democrats' tax policy, arguing that while they advocate for high taxes, they contradict themselves by proposing tax exemptions dependent on the size of income or consumption (such as reducing VAT on food), which ultimately favor the wealthy. He suggests that instead of offering tax-free benefits to help the poor, the focus should be on directing the collected revenue toward improving public services (education, childcare, medicine).
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi criticizes the policy of the Social Democrats. Although they advocate for high taxes to redistribute wealth back to society, they violate their own principles by offering benefits tied to the size of income or consumption and by defending tax exemptions. The poor should be aided not with tax breaks, but by directing the collected funds into public benefits such as education, childcare, and healthcare.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asked Anti Allas to ask the second question in sequence.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas draws attention to trends in European tax policy, rhetorically questioning whether the lowering of VAT on groceries and progressive income tax are connected to the Social Democrats holding power in the majority of European nations.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas posed a brief follow-up question, inquiring whether social democrats are predominantly in power in European countries that have implemented a lower VAT on foodstuffs and a progressive income tax.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi criticizes populist tax policies that obscure the fact that tax exemptions and progressive income tax actually favor the wealthy and damage Europe's competitiveness, citing Denmark's (Copenhagen's) simple, high, and exemption-free value-added tax system as an example of a fairer solution that is less harmful to the economy.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi criticizes populist policies that utilize complex tax exemptions and progressive income tax to conceal the negative impact of redistributive tax systems on European competitiveness. He emphasizes that a simple, exception-free VAT system (following the Danish example) treats people more fairly and harms the economy less, while simultaneously avoiding the "circus" of subsidies and benefits, the majority of which the wealthy end up claiming for themselves.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the minister, thereby concluding the round of questions, and invited his colleague Aivar Sõerd to the Riigikogu rostrum to present the discussion that took place in the Finance Committee.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the minister, thereby concluding the round of questions, and then gave the floor to his colleague Aivar Sõerd so that he could present, from the Riigikogu rostrum, the discussion that had taken place in the Finance Committee.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd provides a report on the sitting of the Riigikogu Finance Committee held during the preparation of Draft Bill 734. The discussion centered on the economic impact of scrapping the planned income tax increase and on international tax competition, particularly concerning corporate income tax. Both the minister and the speaker emphasized the necessity of preventing capital outflow and stimulating the economy, despite colleagues' doubts regarding the potential increase in the budget deficit. The committee subsequently decided to conclude the first reading of the draft bill.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd reported on the Finance Committee's debate concerning Bill 734, where the central issue was the impact of foregoing the income tax increase on the state budget and the economy. Although colleagues expressed concern regarding the resulting deficit and the uncertainty surrounding economic stimulus, the Minister, along with the rapporteur, stressed the significance of international tax competition, particularly concerning corporate income tax and dividends, in order to prevent capital flight and maintain consumer confidence, as a result of which the committee decided to conclude the bill's first reading.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the presenter for the presentation and then gave the floor to Rain Epler to begin the Q&A session.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler is demanding clear confirmation from Aivar and coalition consensus that the bill concerning the abandonment of the tax increase will be seen through even after the elections, thus avoiding a situation where it proves to be merely a pre-election promise of relief that later gets stalled.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler demands clear confirmation from Aivar and a guarantee of coalition consensus that the bill currently under discussion will be fully enacted into law even after the elections, thereby avoiding a situation where it turns out to be merely an electoral promise of tax relief that later stalls.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd stresses that regardless of the impression formed in the committee that the bill will not get bogged down, it is absolutely essential for the competitiveness and development of the economy to conclude the first reading today and swiftly pass the bill into law.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd emphasizes that, regardless of any potential digressions from the committee discussions, the coalition is determined to finalize the first reading of the bill today. This is crucial for guaranteeing the competitiveness of the economy, ensuring people can manage financially, and supporting overall development, which is why the bill deserves rapid backing and enactment into law.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the rapporteur, closed the round of questions, and opened the debate, inviting colleague Urmas Reinsalu to the Riigikogu rostrum on behalf of the Isamaa faction, for whom three minutes of extra time were requested and granted.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the rapporteur, closed the question period, and opened the debate, inviting colleague Urmas Reinsalu to the Riigikogu rostrum on behalf of the Isamaa faction, and requested an additional three minutes for him.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu sharply criticizes the government's fiscal policy incompetence, citing the cancellation of the security tax as proof of deceit. He emphasizes that the constant alteration of the tax system has destroyed economic confidence, leading to a record exodus of foreign investment. Furthermore, he faults the government for an irresponsible budget strategy that forecasts a large deficit until 2070, thereby embedding future tax hikes. He demands a fundamental policy correction to restore Estonia's competitiveness.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu accuses the government of a bungling fiscal policy that is eroding economic confidence, citing the cancellation of the security tax and the historically negative net foreign investment position as examples. He argues that these actions have dragged Estonia's competitiveness down to the level of Iraq. He stresses that the Reform Party's budget strategy, which forecasts an irresponsible 4.5% deficit until 2027 and beyond, is wrecking the nation's finances and, in reality, means that new tax hikes are being baked into the strategy. Therefore, he concludes, a fundamental correction of the government's policy and the finding of alternatives are necessary.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that he was handing the Riigikogu floor over to Rain Epler, the representative of the Estonian Conservative People's Party faction.
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar invited Rain Epler to the Riigikogu rostrum on behalf of the faction of the Estonian Conservative People's Party.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler sharply criticized the Social Democrats' tax policy, stressing that their desire to introduce several new taxes—such as car, property, and progressive income tax—will actually hit rural residents and lower-income individuals the hardest, rather than the wealthy. He further emphasized that people should be able to use the money they earn freely and without restrictions.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler sharply criticizes the Social Democrats' tax policy, emphasizing that the SDE's desire to implement higher taxes—such as a car tax, property tax, and progressive income tax—will not help the vulnerable. Instead, he argues, it will painfully hit residents of rural areas and large families. He concludes that the state should not restrict people's freedom to use their hard-earned money but should instead recognize work and effort.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offered thanks and, on behalf of the Social Democratic Party faction, invited colleague Riina Sikkut to the Riigikogu podium.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offered his thanks and then yielded the floor to his colleague Riina Sikkut, who was speaking on behalf of the Social Democratic Party faction. He invited her to the Riigikogu rostrum.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut sharply criticizes the government's short-sighted and reckless budget policy, which exacerbates the already low level of trust in political institutions. She highlights the coalition's broken promises and its irresponsibility regarding state finances. She particularly condemns the bill currently under discussion, which abolishes the income tax 'hump' while disregarding budget neutrality, and uses borrowed money to cut taxes. This is unprecedented and populist in Estonia, primarily serving higher-income earners, irresponsibly increasing the debt burden, and jeopardizing the country's credit rating.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut voiced deep concern regarding the erosion of trust in political institutions and delivered sharp criticism of the government's shortsighted and irresponsible budget policy. She specifically charged that the draft legislation being debated uses borrowed funds to cut taxes—a move unprecedented in Estonia—which burdens the nation's finances while exclusively benefiting higher-income individuals.
Esimees Lauri Hussar
AI Summary
The Chairman, Lauri Hussar (the presiding officer), organized the order of debate. He confirmed Anti Allas's request for a response speech but gave the floor from the Riigikogu podium first to Minister Jürgen Ligi, deferring Allas's response until the next turn.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar, satisfied that there were no further general requests to speak, established the order of the remaining speakers, granting priority to Minister Jürgen Ligi, followed by Anti Allas for a response to Rain Epler.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi slammed Urmas Reinsalu, accusing him of failing to address specific tax changes in his speech and instead focusing on simply criticizing the government. Ligi warned that such irrelevant and populist tactics pose a danger to the political landscape and could lead to the collapse of the party, recommending that Reinsalu stick to the arguments and the topic of the draft legislation.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi reproached Urmas Reinsalu, arguing that he failed to stick to the topic of the tax amendments under discussion at the Riigikogu podium, and instead wasted time criticizing the government. Ligi warned that such populist and irrelevant tactics are undermining and could lead to Isamaa collapsing with the same spectacular failure that befell the Parts-era IRL, and he urged a return to normal, evidence-based debate.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the previous speaker or the audience and then gave the floor to Anti Allas, asking him to present a response speech.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the previous speaker and then gave the floor to Anti Allas for a response statement.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas accuses his colleague Rain Epler of unethical and "bungling" behavior in the Võru local elections, charging him with putting words into a competitor’s mouth and lying, and predicts that voters will soon deliver a negative assessment of such actions.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas is accusing his colleague Rain Epler of dishonest and "lame" behavior during the Võru local elections, charging him with putting words into a competitor’s mouth and predicting that voters will soon deliver a negative judgment on such an ugly lying tactic.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar concluded the discussions with words of thanks and, before continuing the session, gave Peeter Ernits the opportunity to ask a question regarding the procedure of the sitting.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the participants, closed the discussion, and then gave the floor to Peeter Ernits so that he could ask a question regarding the procedure for conducting the session.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits sharply criticizes the chaotic order and constant miscommunication prevailing at the session, pointing both to the pre-election "squabbling" and to the fact that important speakers disappear when they approach the podium. He offers a solution: the rules of procedure and internal rules should be constantly updated with small amendments at shorter intervals.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits criticized the prevailing "constant sniping" and the absence of key stakeholders at the session, arguing that this hinders substantive discussion and leads to miscommunication. He proposed improving the rules of procedure through small changes introduced at shorter intervals, in order to prevent procedural violations and enhance the management of the session.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar explained that amending the law on internal and working procedures requires consensus among the factions, and the session chair does not have the right to mandate presence in the chamber. Therefore, he cannot resolve the situation where the parties are alternately absent. However, he subsequently concluded the first reading of draft bill 734 and set the deadline for submitting amendments.
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar explained that amending the Riigikogu Rules of Procedure and Internal Rules Act is a complex process that requires a consensus agreement among the parliamentary groups, and he emphasized that, as the presiding officer of the session, he cannot establish rules mandating attendance in the chamber but must rely on the diligence of the Riigikogu members during the debate; he then closed the discussions and set the deadline for submitting amendments.