Taxes
Session: 15th Riigikogu, 6th sitting, press briefing
Date: 2025-09-10 16:39
Participating Politicians:
Total Speeches: 16
Membership: 15
Agenda Duration: 12m
AI Summaries: 16/16 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The present eight questions to the Riigikogu addressed taxes and their impact on the economy and the purchasing power of citizens. The questions were directed to Prime Minister Kaja Kallas, and were posed by members of the Riigikogu, Vladimir Arhipov and Martin Helme, whose opinionated views and comments highlighted differing approaches to the use of the budget surplus and the direction of tax policy. A secure and challenging economic environment and the state's strategic budget policy were central themes of the discussion – particularly concerning the 800 million euro surplus, the possibilities for tax breaks and restructuring of income tax, as well as the issues of car tax and food VAT. The overall focus was on balancing the careful management of tax burdens and expenses in the name of the state's long-term economic resilience.
Decisions Made 1
Decisions were not made.
Most Active Speaker
Vladimir Arhipov (other/opposition) was an active questioner, posing thorough questions regarding the state budget and reducing the tax burden, and demanding explanations from the government on both the budget surplus and the reduction of the VAT on food.
Esimees Lauri Hussar
AI Summary
Riigikogu member Vladimir Arhipov is submitting a question to Prime Minister Kristen Michal concerning the topic of taxes.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov highlights the nearly 800 million euro surplus that has emerged in the state budget and questions the Prime Minister about the source of the funds, why new taxes continue to be imposed on individuals and businesses at the same time, and whether the government intends to use this amount to alleviate tax pressure.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov is asking where the nearly 800 million euro surplus in the state budget originated, why new taxes are being implemented simultaneously, how the government intends to utilize this surplus, and whether there are any plans to reduce the tax burden.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal explained that the budget surplus primarily stems from one-off tax revenues and improved income tax collection, and that the state intends to cut spending by about 10% between 2025 and 2027, with savings totaling approximately 1.4 billion euros. This, combined with tax reforms such as the increase in the tax-free minimum income and the abolition of corporate profit tax, is expected to boost the economy and enhance consumer confidence.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal explained the anatomy of the budget surplus, noting that the deficit is now approximately –1% instead of the planned –3%. This translates to more prudent fiscal management, saving over 800 million euros, thanks to better income tax receipts (due to wage growth) and one-off revenues, as well as cuts to state expenditures. She added that the abolition of corporate profit tax and the increase of the tax-free minimum to 700 euros will contribute to improving the economic environment.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar expresses his thanks and announces that the supplementary question will be presented by his colleague, Martin Helme.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme claims that the construction of the borders did not start in 2015, but began while they were in government. He emphasizes the ongoing state budget deficit and rising taxes, and demands a clear position regarding the car tax.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme sharply criticizes the government's narrative regarding the commencement of border construction and the prudence of state finances, asserting that the economy is ruined, the budget remains deeply in deficit, and there is absolutely no surplus money. He further accuses the coalition of deceiving voters regarding tax policy, dismissing the talk of considering a motor vehicle tax as yet another lie, since the coalition itself voted against abolishing the tax during last week's parliamentary session.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal is pushing back against the criticism, stressing that the facts—such as Isamaa party member Jüri Ratas’s decision to cut border construction and the two-billion-euro budget deficit inherited from his government, a deficit exacerbated by the loosening of 2017 budget rules—remain facts. She affirms that the economic outlook has improved, dismisses claims regarding the timing of the election cycle, and admits that the level of the car tax is too high, but stresses that the government’s primary priority is national defense.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal stated that the Estonian economy is recovering and the deficit has decreased. He pointed to the spending habits of previous governments and the detrimental effects of loosening budget rules, and affirmed that budget decisions are made annually regardless of elections, while simultaneously promising to discuss the car tax and broader tax reforms, emphasizing that national defense remains the primary priority.
Esimees Lauri Hussar
AI Summary
The Chairman thanks the previous speaker and calls upon Vladimir Arkhipov to pose his clarifying question.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov criticized the prime minister for failing to answer a question regarding plans to reduce the tax burden. He demanded to know whether the government intends to follow the example of other European countries, including Sweden, and lower the VAT on food in order to boost people's purchasing power and mitigate the rising cost of basic necessities.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov asked whether the government plans to reduce the tax burden and lower the VAT on food in order to increase people's purchasing power, or if it intends to continue the policy that makes basic necessities increasingly expensive, and noted that the prime minister failed to provide a concrete answer to the question.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal announced that the tax burden will decrease and the tax hump will disappear on January 1, 2026. This means that the average wage earner will pay approximately 1,500 euros less in taxes annually. Additionally, the government is considering further tax concessions and will direct budget priorities toward defense and salaries in critical sectors.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal confirmed that the tax burden will decrease, reaching over 35% by 2029, and stressed that the primary relief for the middle class is scheduled for January 1, 2026, when the progressive income tax—often referred to as the 'tax hump'—will be abolished. This change will leave approximately 1,500 euros more annually in the hands of the average wage earner. Simultaneously, budget priorities remain focused on defense and the salaries of critical sectors (teachers, police, and rescuers). Furthermore, reducing the VAT on foodstuffs is considered an ineffective method for putting more money back into people's hands.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks the audience and concludes the consideration of today's eighth question.