Tax policy
Session: 15th Riigikogu, 5th sitting, press briefing
Date: 2025-03-26 15:21
Participating Politicians:
Total Speeches: 12
Membership: 15
Agenda Duration: 12m
AI Summaries: 12/12 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu information session focused on tax policy and questions concerning food prices. Züleyxa Izmailova highlighted inflation, consumer purchasing power, and the relationship between food value-added tax, referencing the experiences of other countries and asking what specific measures the government should implement to lower food prices. Prime Minister Kaja Kallas stated that the main objective of the response is clearly maintaining balance: while exceptions like reducing the value-added tax on food are theoretically under discussion, a cost-benefit analysis must be conducted and the state's defense and budget dynamics must be ensured. Proposals included initially addressing the overall fairness and sustainability of the tax system, including raising the income tax-free minimum and eliminating the income tax burden from the first euro. Additional topics covered included competition in the food industry and the influence of intermediaries on prices, and the discussion continued with questions and answers regarding the impact of rising food prices and tax changes. A second direction emerged, namely the procedural question raised by Reili Rand and other colleagues, which concerned the possibilities for conducting information sessions and the possibility of re-submitting questions to the Prime Minister or in writing.
Decisions Made 1
No decisions were made at the information session. The discussion continues, and tax policy and food prices will be decided by the government and the Riigikogu at subsequent meetings.
Most Active Speaker
The most active political speaker at the information session was Züleyxa Izmailova (pid SsahA1roARs). She posed two main questions relating to food value-added tax, inflation, and consumer purchasing power, and set the direction of the discussion. Her position is other (as there is no clear party affiliation based on the text).
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar gave Züleyxa Izmailova the floor for the seventh question; Prime Minister Kristen Michal answers, and the topic is tax policy.
Züleyxa Izmailova
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Züleyxa Izmailova claims that inflation is around 6% and that purchasing power is eroding, that the value-added tax on food in Estonia is among the highest in the European Union, and that people buy food from neighboring countries or cut back on spending, and she asks the prime minister what solutions to lower food prices she plans and whether she herself goes to the grocery store.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that lowering the value-added tax on food products might not bring a lasting price reduction to consumers, and the lost revenue would have to be compensated, which would require larger changes to the tax system, while at the same time he stressed the need to safeguard the state and a balanced tax policy.
Esimees Lauri Hussar
AI Summary
The chair thanks Züleyxa Izmailovat and asks her to pose a clarifying question.
Züleyxa Izmailova
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Züleyxa Izmailova notes that food prices in Estonia have risen faster than in Europe, and asks which tax reforms could lower food prices and why Estonia could not have value-added tax on food as low as in other European Union countries.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that although creating tax exemptions could stimulate entrepreneurship, increase consumers' purchasing power, and lower prices through competition, these exemptions must be funded and the profits of intermediaries must be avoided, while among the plans there is the abolition of income tax from the first euro and raising the tax-free minimum to 700 euros, in order to make people's lives easier.
Esimees Lauri Hussar
AI Summary
The chairman Lauri Hussar asks Reili Rand to present an additional question.
Reili Rand
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Reili Rand emphasizes that although there are signs of recovery in the economy, people's livelihoods do not improve and purchasing power deteriorates; taking Hiiumaa as an example, she points to a low median wage and asks why the government cut funding for national defense in favor of entrepreneurs, but kept the VAT increase affecting households' livelihoods permanent.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal stressed that abolishing income tax liability from the first euro and raising the tax-free minimum to 700 euros will put more money in the hands of low-income families, simplify and make the tax system fairer, and spur business growth, which will bring economic growth across Estonia and better jobs.
Esimees Lauri Hussar
AI Summary
The chair ends the consideration of this question, but before moving on notes that colleague Reili Rannal has her hand raised, and asks a question about the procedure for conducting the meeting.
Reili Rand
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
During the session, Reili Rand asked why the prime minister's answer did not address the entrepreneurs' contribution to national defense and why a small number of entrepreneurs is preferred over a broader segment of the population, and what options she has to re-submit her question or obtain an answer.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar explained that members of the Riigikogu have several ways to ask questions of the Prime Minister: at an information session or by interpellation, in writing, and after the information session or at its end to ask more precise questions; and these options are provided for in the Riigikogu's Rules of Procedure.