First reading of the draft resolution of the Riigikogu, "Submitting a proposal to the Republic of Estonia's Government to reduce the VAT on foodstuffs to 9 percent" (579 OE)
Session: 15th Estonian Parliament, 5th session, plenary session
Date: 2025-04-17 13:10
Total Speeches: 67
Membership: 15
Agenda Duration: 1h 22m
AI Summaries: 67/67 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu discussed the first reading of draft resolution 579 submitted by the Centre Party faction, "Proposal to the Republic of Estonia Government to reduce the value-added tax on foodstuffs to 9 percent." Presenter of the draft Lauri Laats (Centre Party) emphasized, based on data from the Institute for Economic Research, the deterioration of the Estonian economy and people's ability to cope, citing high inflation and rising food prices, which are pushing a quarter of the population to the brink of poverty. He pointed out that 25 European Union member states use a lower VAT rate on foodstuffs, which, in his opinion, proves the measure's effectiveness.
The debate widely addressed tax policy priorities, criticizing the government’s decisions (such as the abolition of the tax shield and the increase in the share of consumption taxes). Diana Ingerainen (AyubOtYc9xI), representative of the Finance Committee, announced that the committee decided to reject the draft (5 in favor, 2 against), citing analyses that show the impact of reducing VAT on consumer prices is short-term or absent. The opposition (Centre Party) argued against this, citing a statement from a trade association representative that prices would fall. After negotiations, the draft was put to a final vote, where it was rejected due to the lack of the necessary majority.
Decisions Made 1
Bill 579 "Proposal to the Republic's Government to reduce the VAT on foodstuffs to 9 percent" was rejected in the final vote (15 in favor, 0 against, 0 abstentions).
Most Active Speaker
Lauri Laats (pid: dCJrTlUxNYA), a member of the Centre Party faction and the presenter of the draft, was the most active speaker, delivering a thorough presentation and answering many questions. His position was clearly left-leaning, emphasizing social inequality and supporting people with lower incomes.
Aseesimees Arvo Aller
AI Summary
The first item on the agenda concerns the first reading of Draft No. 579 of the Riigikogu resolution “Proposal to the Government of the Republic to reduce the value-added tax on food products to 9%,” submitted by the Centre Party faction, and the rapporteur is Riigikogu member Lauri Laatsi.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
The Centre Party faction submitted a proposal to lower the VAT on basic groceries to 9% (root vegetables and other vegetables, milk, meat, cereals), so that food prices would fall in inflationary conditions and about 300,000 people in the country could cope better, showing an example from other European countries where the VAT on food is lower.
Aseesimees Arvo Aller
AI Summary
The deputy chairman Arvo Aller thanks for the thorough presentation, states that there are questions, and invites Vladimir Arhipov to respond.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov emphasizes that food is a basic need and that tax cuts are a sign of the state's care, the impact of which on households' ability to cope with inflation—especially for low-income earners—must be carefully assessed.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
The state is taking measures to ensure a quality food basket, but people are buying increasingly cheaper and less nutritious products, and in stores there is a visible decrease in packaging and quantities, therefore ongoing social support for those in need is necessary and, hopefully, also the continuation of campaigns by previous municipalities.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksei Jevgrafov believes that Finance Minister Ligi's claim about a value-added tax cut, which would not affect food prices, is false, and he emphasizes that, according to economic theory, both the price of raw materials and taxes affect the final price, and he asks for Lauri's opinion and the finance minister's response.
Aseesimees Arvo Aller
AI Summary
This is a short request to invite Aleksei Jevgrafov to speak.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats emphasizes that in Estonia the value-added tax on food has never been lowered, and that experiences must be sought from outside, because the experiences of 25 European Union member states show that the system has not been changed. At the same time, he criticizes a simple, one-size-fits-all tax system and stresses that consumption taxes account for about 43% of the state treasury's revenues, which directly affect people’s wallets and burden especially those with lower and middle incomes.
Aseesimees Arvo Aller
AI Summary
At the start of the speech, Vadim Belobrovtsev is invited onto the stage.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
He notes that interest in this topic comes mainly from coalition politicians, and he states that the government's tax policies hit people with low incomes the hardest, and he proposes lowering the value-added tax on food products as a good aid for them.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats emphasizes that the current government decisions will deepen poverty, because the tax burden must be maintained, and the imposition of a bank tax and the lowering of VAT on foodstuffs are considered priorities, but he does not support removing the tax burden.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller invited Andre Hanimägi to come forward.
Andre Hanimägi
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Andre Hanimägi asks whether the current government will continue the Social Democrats' work to secure tax relief and price reductions, and whether that objective remains or has vanished along with the Social Democrats.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
The Social Democrats, who have been in government for three years, have raised taxes, cut funding for public transport in the counties, and violated the principles of democracy and the rule of law, and now they should stand up for their voters in opposition.
Aseesimees Arvo Aller
AI Summary
From the presenter's response it became clear that a VAT reduction is on the agenda, and there is a proposal under discussion to lower the VAT on food products to 9%.
Andre Hanimägi
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
They asked the chair of the meeting a question about the microphone's operation, noted that Laats was reading from a sheet of paper, asked to hear the answers without reading the slides, and stressed that the draft is very important.
Aseesimees Arvo Aller
AI Summary
The deputy chairman Arvo Aller said that the bill is important, mentioned a VAT reduction, and asked the presenter to clarify his previous answer to the following question.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik asks whether, in the future, the Centre Party sees an opportunity for Estonian voters to start supporting a left-wing tax system (a progressive income tax, a lower value-added tax), or whether the system will continue with a right-wing system that supports the wealthier part of society.
Aseesimees Arvo Aller
AI Summary
The speech focuses on the fact that your time has come and you have the opportunity to act.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats emphasizes that people see everyday life as more complicated, and rising prices are making it so; discontent with the government is growing, opposition ratings are rising, and the willingness to change may be in place by 2027, but the coalition has only a two-seat majority, and therefore the opposition must continue to present its positions and arguments in face-to-face discussions with the coalition, emphasizing that this cannot go on, and the Social Democrats would do well to talk with their colleagues so that the situation changes in the near future and the coalition loses its majority.
Aseesimees Arvo Aller
AI Summary
The vice-chair asks Anastassia Kovalenko-Kõlvarti to speak.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker accuses the Social Democrats of voting for tax increases and making inhumane decisions while in government, and now, when they are out of power, they hypocritically worry about people's ability to cope.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats criticizes the Tallinn Social Democrats' rise to power and the reduction of the number of polling stations as a violation of democratic values, and notes that this represents a new, undemocratic direction in politics.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller ended the questioning, noting that at the beginning there was talk of value-added tax, and Tanel Kiik asked a question to the chair of the meeting.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik noted that the speaker should remember that he is in the Riigikogu, not in the Tallinn City Council, and criticized talking about serious accusations that are not tied to the draft bill, recommending sticking to the Riigikogu's topics.
Aseesimees Arvo Aller
AI Summary
The deputy speaker of the Riigikogu, Arvo Aller, thanked the chamber for its attention and explained the introduction to the agenda item, saying that he had invited a member of the Riigikogu to the floor, which confirms that this is the agenda item for this session.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats notes that the question and answer addressed the Social Democrats' conduct in government and emphasizes Tallinn as the capital of Estonia, and refers to Kiik's flash of thought on the topic of a criminal indictment, reminding that Kiik was at the same time the party's deputy chair and knew what he was involved in.
Aseesimees Arvo Aller
AI Summary
Vice-chairman Arvo Aller noted that, in his view, this was not a procedural question for the chair of the meeting, and he is awaiting the next response from Anastassia Kovalenko-Kõlvart.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart accused the Social Democrats of hypocrisy, emphasized the principles of a member of the Estonian Parliament's free mandate and freedom of speech, and noted that former Centre Party members, whose decisions led to criminal punishment, are now in the ranks of the Social Democrats.
Aseesimees Arvo Aller
AI Summary
The chair of the meeting said that he did not see a procedural question, stressed the independence of a Riigikogu member's mandate, and referred to Tanel Kiik as the proponent of Tanel Kiik's procedural question.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik made a factual correction that he became the Centre Party's deputy chairman at the same time as Laats joined the board, and noted that during the latest sanctions-related events the deputy chairman was Mihhail Kõlvart.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller gave thanks.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik wanted to correct something for the stenogram's accuracy.
Aseesimees Arvo Aller
AI Summary
Arvo Aller emphasizes that Tallinn's problems must be solved in the council, not under procedural formalities, and steers the discussion toward substantive debate by inviting Diana Ingerainen, a member of the Finance Committee, to the podium.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The Finance Committee discussed the submitted proposal to reduce the VAT on food products, noting that the health impact has not been analyzed and that the reduction could have a large budgetary impact, and decided, in my capacity as the representative of the leading committee, to bring the bill here on April 17 and to postpone it (5 in favor, 2 against).
Aseesimees Arvo Aller
AI Summary
The vice-chairman thanks and invites questions, mentioning Vladimir Arhipov.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov emphasizes that many European countries have reduced the VAT on food, and Estonia should follow suit, because in his view lowering the VAT on food brings significant benefits to households and he asks where the claim that prices do not fall comes from.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen said that it has been studied how Latvia's 5% value-added tax reduction affected and whether it reached the consumer, but the impact did not reach the consumer, and therefore work must continue to clarify how food prices would actually reach the consumer.
Aseesimees Arvo Aller
AI Summary
At the start of the speech, Andre Hanimägele is given the floor.
Andre Hanimägi
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Andre Hanimägi thanked and stressed that it is good that we have again reached the substance of the draft bill, not political fluff, and asked whether the current ministry and the minister will continue the VAT analysis by product group (for example regarding baby food) and whether in the committee it was discussed how to proceed with this work.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen noted that the commission had not addressed the topic, but in her view it should be studied further and dealt with in more detail, citing olive oil from Spain as an example.
Aseesimees Arvo Aller
AI Summary
The vice-chair noted that the committee sent this draft to a final vote, and did not send it back, and that the draft of the decision may go to a final vote, and asked that Helle-Moonika Helme be given the floor.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
They asked the committee a question about which is the cause of the steadily increasing poverty among the people of Estonia: high taxes (including the value-added tax on food products) or Finance Minister Jürgen Ligi's claim that people are simply whining.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Although this wasn't really discussed in the committee, the debate could continue to determine what and how these taxes might affect, and there it should become more detailed and in-depth in order to be able to make a rough estimate.
Aseesimees Arvo Aller
AI Summary
The main point of the speech is inviting Rain Epler onto the stage.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler highlighted a contradiction in the committee's positions regarding the lowering of value-added tax: although studies show that the reduction does not provide relief, there is a desire to continue the investigation and this may reflect the decision of a minister who is a party colleague, and he asked for a comment on what that would mean.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen emphasizes that Estonia must examine its own affairs and the entire chain from producers to end consumers, because previous analyses have been carried out elsewhere and on that basis the country's affairs cannot be assessed accurately.
Aseesimees Arvo Aller
AI Summary
They ask Anastassia Kovalenko-Kõlvarti to perform.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart recalls sharp discussions with Jürgen Ligiga and asks whether the state should do more to help people cope with the price increases arising from the new year and the VAT increase.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
That topic was not discussed in the committee in that form, but in my view I do not share some of Jürgen Ligi's positions.
Aseesimees Arvo Aller
AI Summary
The deputy chairman Arvo Aller invited Tanel Kiik onto the stage.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik asked why VAT exemptions work in one sector (medicines, books), but when it comes to food products they try to pretend that they do not work.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Thank you for the question, but we did not discuss this topic in the committee in this form.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
They ask whether lowering the value-added tax on groceries could do the most to help those Estonian people whose incomes are low and who are the least protected.
Aseesimees Arvo Aller
AI Summary
The speech is simply an appeal addressed to Vadim Belobrovtsev with the word "please".
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen said that the committee discussed that there are about 300,000 people in Estonia who are most affected by the rise in food prices, and although she asked which taxes or subsidies would help them, there is no such analysis in the committee.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller asks Aleksei Jevgrafovit to come onto the stage.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksei Jevgrafov asks the chair of the meeting, who has a medical background, to state his opinion on whether the possibility of purchasing cheaper food enables people to buy more healthy food, or whether price in this matter does not play any role at all.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Although there has been a lot of thought given to the topic of people's choices and promoting their healthier choices, my position was not discussed in the committee, and the lowering of VAT on cheap vegetables did not significantly affect consumption, because context, cultural background, education, family, attitudes, and habits play an important role.
Aseesimees Arvo Aller
AI Summary
The vice-chairman thanked, announced that there were no more questions, opened negotiations with the factions, and asked Vadim Belobrovtsev on behalf of the Estonian Centre Party faction.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Belobrovtsev said that lowering the VAT on groceries is already an overdue issue, because over the past two years prices have risen on average by 40%, and this primarily affects people with low incomes. The coalition has not been able to respond to this, and the Konjunktuuriinstituut has shown, in six points, the deterioration of the economic situation and a lack of trust in the government, therefore it is necessary to lower VAT and take European practice as an example.
Aseesimees Arvo Aller
AI Summary
Vice-chairman Arvo Aller requests an additional three minutes.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev argues that lowering the value-added tax on food products will definitely reduce prices, a claim confirmed by representatives of merchants, and although the coalition has its difficulties, he hopes that the less well-off will receive help and that the opposition and the Centre Party will ultimately go along with this step.
Aseesimees Arvo Aller
AI Summary
The speech begins with thanks, and next to speak is Tanel Kiik, authorized to speak on behalf of the Estonian Social Democratic Party.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik spoke about the unfairness of Estonia's tax system, which has for decades favored the wealthier part of society, and urged the government to consider a progressive income tax and other measures to distribute the tax burden more fairly.
Aseesimees Arvo Aller
AI Summary
Vice-Chair Arvo Aller announced that negotiations have ended and that the final vote on Draft Bill 579 will be initiated, the aim of which is to reduce the value-added tax on foodstuffs to 9 percent, and for its adoption a majority of the Riigikogu's membership is required, and no amendment proposals were submitted.
Aseesimees Arvo Aller
AI Summary
The draft bill No. 579 was rejected; 15 members of the Riigikogu voted in favor, none against, and there were no abstentions.