First reading of the draft resolution of the Riigikogu "Submitting a proposal to the Republic of Estonia's Government to develop tax incentives for student employment" (638 OE)
Session: 15th Riigikogu, 6th sitting, plenary session
Date: 2025-09-10 20:47
Participating Politicians:
Total Speeches: 68
Membership: 15
Agenda Duration: 53m
AI Summaries: 68/68 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The first reading of the Riigikogu resolution “Making a proposal to the Republic of Estonia Government to develop tax incentives for employing students” addressed draft law 638, submitted by the Estonian Centre Party faction. The draft’s purpose was to provide an incentive for employing young people, especially those aged 19 and under, through changes to tax regulations. Lauri Laats presented the bill, and the discussion focused primarily on the challenges related to the employment of young people: what the participation of young people represents in the labor market, and what the potential impacts would be if the social tax burden on young people's work were reduced. In addition, examples from neighboring countries (Latvia, Estonia and Lithuania) were brought up, and calculations indicated potential impacts on the state budget and the level of young people’s employment.
Another important part was the discussion on the assessments of the representatives of the Ministry of Finance and the committee—whether and how such a benefit could function, and whether there was a risk of schemes or tax fraud arising. Ultimately, the discussions concluded that the measure needed to be analyzed more thoroughly and the preparation of legislation considered, but when it came to the vote, the draft law was rejected. This demonstrates differing assumptions and different considerations between the opposition and the coalition regarding the impact of tax incentives on the employment of young people and the state budget.
Decisions Made 1
Draft 638, "Proposal to the Republic Government to develop tax incentives for student employment" – first reading – vote result: 23 in favor, 0 against, no abstentions; the draft has been rejected.
Most Active Speaker
Diana Ingerainen, a member of the Riigikogu's finance committee; position: other
Aseesimees Arvo Aller
AI Summary
We now proceed to the second item on the agenda: the first reading of Riigikogu Draft Resolution 638, submitted by the faction of the Estonian Centre Party. This resolution addresses tax incentives for student employment and requires a majority vote of the Riigikogu membership. The presenter is Riigikogu member Lauri Laats.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller opened the second item on the agenda of the Riigikogu session, which was Draft Bill 638, submitted by the Centre Party Faction, proposing that the Government of the Republic develop tax incentives for student employment, and invited Riigikogu member Lauri Laats to serve as the rapporteur for the first reading of the draft bill.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats highlighted the alarmingly high rate of youth unemployment (22% among those up to 25 years old) and introduced the Centre Party's draft resolution. This resolution proposes lowering the social tax rate for working youth up to the age of 19 from 33% to 20% (by excluding the portion covering state-guaranteed health insurance). The goal is to reduce the tax burden on employers and encourage young people to develop work habits. At the same time, he criticized the Ministry of Finance's opposition, which he claimed was based on unfounded fears of potential fraud.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats introduced a draft bill proposing to reduce the social tax for young employees up to the age of 19 from 33% to 20%. The aim is to encourage their hiring and increase job creation, taking into account the 22% youth unemployment rate and the Ministry of Finance’s concerns regarding potential tax fraud.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the esteemed presenter, declared the presentation concluded, and opened the floor for questions, giving the first opportunity to speak to Anastassia Kovalenko-Kõlvart.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks the presenter, opens the floor for questions, and invites Anastassia Kovalenko-Kõlvart to pose her questions.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker emphasized that youth issues are rarely discussed in the chamber, and in light of the current bill, it is crucial to note that youth unemployment in Estonia is the highest in Europe and is rapidly increasing. They questioned why the government favors foreign labor instead of utilizing its own young people or those currently outside the workforce.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart is raising the alarming issue of youth unemployment, which is currently the highest and fastest-growing in Europe here in Estonia. She criticized the government's inaction, questioning why the focus remains on importing foreign labor rather than utilizing the existing pool of young people and other Estonian residents who are currently outside the workforce.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats emphasizes that Estonia is experiencing both a labor shortage and unemployment (unemployment among youth is around 22%), and that the focus must be placed on further training and professional reorientation, rather than increasing foreign labor or commissioning an analysis of the impact of tax hikes, warning of long-term social and economic consequences and calling for an honest dialogue with the people.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats sharply criticizes the government's inaction and shortsightedness in addressing labor market issues, highlighting the simultaneous existence of labor shortages and rising unemployment, particularly among young people. He warns against the social consequences of increasing foreign labor, arguing that this situation is merely a result of the long-term failure to provide retraining. He stresses that the government made significant tax hike decisions without any prior analysis, which they are now attempting to commission retroactively through a Ministry of Finance procurement. He views this as a clear admission of a lack of political responsibility and a desire to shield politicians.
Esimees Lauri Hussar
AI Summary
The Chairman called upon Vladimir Arkhipov to speak.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov asked the presenter what was hindering the adoption of the youth employment bill submitted by the opposition. He suspected the reason was either fear of employers defrauding young people, including members of student work brigades, or perhaps outright political opposition to the bill’s initiator.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov asks Lauri what fears might impede the adoption of the bill, keeping in mind two important groups—young people participating in student work brigades, and those who are neither studying nor working. He also asks whether the fear is that the company will cheat, or simply that the bill originated with the opposition, emphasizing that the money saved could be directed toward improving working conditions.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats criticizes the Reform Party's idea for a unified tax system, emphasizing that simplifying tax administration must not harm people's lives or the poorest segments of society, and that different tax rates are necessary because a unified system does not reflect real economic conditions.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats criticizes the coalition for ruthlessly ramming through decisions that have resulted in the worsening of the economy and people’s ability to cope. He identifies the core issue as the Reform Party’s ideological adherence to a uniform tax system, prioritizing administrative efficiency over social justice, while completely ignoring public demands to lower the VAT on food—a measure that disproportionately hits those with lower incomes.
Esimees Lauri Hussar
AI Summary
The Chairman asks that Vadim Belobrovtsev be invited to the stage.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
He/She asks whether cutting taxes would change business owners' attitudes toward hiring young people, and what their opinion on the matter would be.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev asks the presenter to share the views of entrepreneurs on whether a lower tax rate would change their attitude and willingness to hire young people.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats believes that tax incentives are the best way to motivate youth employment, because currently, when taxes are equal, employers always prefer more experienced workers for the sake of efficiency. Therefore, tax relief would help businesses hire even the newest, most inexperienced young people.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
He/She emphasizes that tax incentives and uniform tax rates motivate businesses to hire young people, including recent graduates, especially for seasonal positions, as this makes employing youth economically advantageous.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invited Peeter Ernits to speak.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits expresses concern that despite the extremely pressing issue of youth unemployment, political "steamroller drivers" will soon roll right over the draft bill, and asks rhetorically what should be done so that similar potentially good initiatives actually bring wider benefits and are implemented, instead of just being paved over.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits used the metaphor of steamroller drivers, saying that although youth unemployment is very high, the bill must not simply be steamrolled through; instead, things must be allowed to grow, rather than forcing it through.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats is urgently demanding the formation of a new government, arguing that the current coalition is employing "steamroller politics" by voting down the opposition’s draft bill in the Finance Committee—a bill designed to alleviate youth unemployment and assist entrepreneurs. He calls on coalition MPs to think independently and improve the legislation, despite the government’s dictates, while simultaneously predicting that the current administration will not remain in office until March 2027.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats called for the formation of a new government and urged them to work together on adopting the bill benefiting young people and entrepreneurs, and amending it if necessary. Otherwise, he promised that a new government would be installed before 2027.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asks to call Aleksei Jevgrafov to the stage.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksei Jevgrafov voiced his support for the draft bill, noting that it affects him personally since his son is a 19-year-old student at the University of Life Sciences. He also asked his colleague Lauri for clarification on what additional measures the state should implement to further improve labor market opportunities for young people.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksei Jevgrafov noted a personal connection to the favorable draft bill, as his 19-year-old son is studying at the Estonian University of Life Sciences, and he asked what the state could do to ensure young people have more opportunities in the job market.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats asserts that the 2% income tax increase drained approximately one billion euros from businesses, which subsequently reduced corporate liquidity, lowered investments, and crippled the economic environment, thereby escalating the risk of bankruptcies and job losses.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats sharply criticizes the government's economic policy, claiming that tax increases, especially the 2% income tax hike, have suppressed the economic environment, caused an outflow of investments, and forced entrepreneurs to withdraw profits amounting to a billion from their companies, which in turn has reduced corporate liquidity and increased the risk of bankruptcy, instead of supporting employment and entrepreneurship.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the rapporteur, stated that there were no further questions, and invited Diana Ingerainen, a member of the Riigikogu Finance Committee, to the rostrum to present the discussion that took place within the Riigikogu Finance Committee.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked the previous presenter and concluded the questioning, subsequently inviting Diana Ingerainen, a member of the Finance Committee, to the Riigikogu rostrum to introduce the discussion that had taken place in the committee.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen provides an overview of the Finance Committee's session held on June 10, where the draft bill was discussed, its target group (up to 19 years old) was specified, and decisions were adopted by consensus regarding the inclusion of the draft bill on today's plenary agenda and the appointment of the speaker herself as the representative of the lead committee.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The Finance Committee discussed the draft legislation concerning individuals up to 19 years of age (and up to 25 years of age regarding employment matters), heard the representative of the ministry, and adopted two consensus decisions: placing the draft legislation on the plenary session agenda for September 10th, and appointing Diana Ingerainen as the representative of the lead committee.
Esimees Lauri Hussar
AI Summary
The Chairman thanks the presenter and invites Vadim Belobrovtsev to answer questions.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev inquired whether the measure in question could stimulate the economy by motivating young people to enter the workforce sooner, and whether this, in turn, would increase employers' willingness to hire them.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
The presenter is asked whether the measure in question would stimulate the economy, increase the work readiness of younger people, and whether businesses would hire them.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The Commission noted that if the draft bill is applied to those up to 19 years of age, information regarding its impacts is lacking, and it is unknown whether and to what extent it promotes the intended outcome.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen explained that although the committee discussed the bill’s impact on young people up to the age of 19, they unfortunately lack knowledge regarding whether, and to what extent, this measure actually encourages young people to take up employment.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Anastassia Kovalenko-Kõlvart to the stage.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker at the Delta conference points out that Estonia lacks a comprehensive labor policy and asks whether experts or ministers have provided an answer to this question by now.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart refers to previous assurances from experts and entrepreneurs that Estonia lacks a comprehensive labor policy, and asks the rapporteur whether they have received an answer from ministers or colleagues to date regarding whether this policy has now been established.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
During the speech, it was acknowledged that a complete, comprehensive labor policy addressing taxation and its effects is missing. While fragments and the OSKA study exist, the full, holistic picture is simply not present.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen emphasized, citing Professor Urmas Varblas’s earlier work, that Estonia severely lacks a comprehensive labor policy. Such a policy would need to thoroughly analyze the impacts of taxation and taxes, given that current studies (such as OSKA) only provide fragmented information.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar called Peeter Ernits.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits asserts that there are two consensuses regarding the submission, but there has been no discussion on how to resolve the issue with the coalition. He also points out that the government has a plan to solve this very problem, a plan which is currently highly topical.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Peeter Ernits voiced his indignation that the fate of the draft legislation attempting to solve a pressing problem is already sealed and that it will be crushed by the coalition's "steamroller." He then asked the government whether they genuinely plan to address the same question, or if they will merely provide the standard response that the matter is already being worked on.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen stated that the topic is relevant, but it was not discussed by the commission.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asks Aleksei Jevgrafov to come.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The report stated that although the aggregate impact might have a positive effect on the labor market and employment growth, it would result in a deficit of approximately 5.4 million euros for the Health Insurance Fund. This raises the question of why we are discussing a shortfall when tax revenues are increasing.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksei Jevgrafov refers to the documented statement made by an advisor of the Ministry of Finance, which asserts that although employment growth should positively affect the labor market, it simultaneously creates a deficit of approximately 5.4 million euros for Tervisekassa (the Health Insurance Fund). Consequently, he requests clarification on how it is possible that an increase in tax revenue leads to a shortfall for the Health Insurance Fund.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen confirms that the rise in employment and tax collection vitalizes the economy, but stresses that it is important to know the nature of the work being offered to young people up to 19 years old and what the long-term effect of this will be on their future professional lives.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen emphasizes that while growth in employment and tax revenues stimulate the economy, we do not know exactly what kind of work is being offered to young people up to the age of 19, or what the long-term impact on their working lives will be.
Esimees Lauri Hussar
AI Summary
The Chairman thanks the rapporteur, announces that the questioning period has concluded, opens the debate, and invites Vadim Belobrovtsev, on behalf of the Centre Party Faction, to the Riigikogu rostrum.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev said that the state must incentivize the hiring of young people through additional measures, including reducing the employer's social tax for those under 19 from 33% to 20%. This is intended to help young people find employment, make employers interested in hiring them, balance the labor market, and reduce reliance on foreign labor.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev supports the Centre Party faction's draft bill, which proposes reducing the social tax rate for hiring young people under the age of 19 from 33% to 20%, but he believes this is only a modest start. He emphasizes that the state must identify specific measures to motivate young people to enter the workforce early and encourage employers to hire them. This is necessary to utilize domestic labor and achieve balance in the job market, rather than having young people "hanging around" instead of engaging in productive activities.
Esimees Lauri Hussar
AI Summary
The Chairman thanks [the previous speaker]. On behalf of the Isamaa faction, colleague Aivar Kokk is invited here to the Riigikogu rostrum.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk criticizes the coalition for avoiding the discussion of economic proposals and supports a draft bill aimed at stimulating the Estonian economy and retaining young people in the country. He proposes amendments to the taxation of hiring youth (under 19) so that companies can more easily employ and engage them during the summer, given that they are already insured by the Health Insurance Fund (Tervisekassa). He also points to Finland's example regarding the integration of vocational and upper secondary education.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk approves of the draft bill and suggests connecting vocational school students with businesses. The goal is for them to work during the summer, which would subsequently stimulate the Estonian economy and curb the emigration of young people to neighboring countries. He also stressed that individuals up to the age of 19 are covered by the Health Insurance Fund.
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar says that he calls for order and interrupts.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk concludes his speech and thanks the audience.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk briefly announced the conclusion of his address and expressed his thanks to the audience.
Esimees Lauri Hussar
AI Summary
The Chairman declared the debate closed, as no amendments had been submitted, and put to the final vote the draft resolution submitted by the Center Party faction concerning the development of tax incentives for working students.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar decided to add one minute to the ongoing proceedings to ensure the time limit was maintained.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk concluded his short address, expressing thanks and wishing the listeners all the best.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar closed the debate, as neither requests to speak nor amendments to the draft bill had been submitted, and then proceeded to the final vote, putting draft bill 638, submitted by the Estonian Centre Party faction, before the Riigikogu for a vote. The bill proposes that the Government of the Republic develop tax incentives for student employment.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced the results of the vote, according to which the draft bill was rejected, despite 23 Riigikogu members voting in favor and zero opposing votes or abstentions being registered.
Esimees Lauri Hussar
AI Summary
The draft bill was rejected; 23 members of the Riigikogu voted in favor, and there were no votes against or abstentions.