Draft Law Amending the Value Added Tax Act (593 SE) – First Reading
Session: 15th Estonian Parliament, 5th session, plenary session
Date: 2025-04-17 14:33
Total Speeches: 48
Membership: 15
Agenda Duration: 52m
AI Summaries: 48/48 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The second agenda item concerns the first reading of bill 593, an act to amend the value-added tax act, initiated by the Conservative People's Party of Estonia. The bill aims to reduce the value-added tax on foodstuffs to 5% and to expand the scope of potential reduced rates (including 5% for books and medicines; the distinction regarding newspapers was debated, considering whether they should fall under the same criteria or not). The estimated budgetary impact is approximately 400 million euros, and various options for financing were proposed, sparking a public discussion about improving consumer welfare and stimulating domestic consumption through cost reductions. The debate was shaped by perspectives from both the governing and opposition sides, concerning inflation, price increases, and limitations stemming from European Union tax rate directives.
Decisions Made 1
Bill 593 rejected on first reading; vote result: 44 in favor, 14 against, 0 abstentions. The bill is dropped from consideration.
Most Active Speaker
Rain Epler (EKRE faction), a right-wing politician, speaker, and representative of an initiative; was the presenter and spoke several times in the debate, highlighting the main justifications and counterarguments in the context of inflation, family incomes, and European Union tax rates. He represents close participation and active factional work and is notably one of the most frequent speakers at the session.
Aseesimees Arvo Aller
AI Summary
Arvo Aller announced that today's second item on the agenda is the EKRE faction's bill to amend the Value Added Tax Act, bill no. 593, in its first reading, and Rain Epler, a member of the Riigikogu, was asked to serve as the faction's rapporteur.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler said that the situation of Estonian families' livelihoods has deteriorated and prices are rising, and he submitted a bill to lower the value-added tax on food products to 5% in order to improve consumer confidence and domestic consumption, whose budget impact is about 400 million euros and which is planned to be financed through expenditure cuts and other funding sources.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites questions and asks that Tanel Kiik answer.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik asked an EKRE representative what measures could be taken to persuade the current coalition to support reforms resembling a progressive income tax, since in the current parliament the right-wing parties are in the majority.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler said that the government is the same across the left–right spectrum and they voted against the bills; the chances of the opposition's bills passing are small, but he believes that a bill will be introduced in the near future that has broad consensus and will be carried forward, and he does not lose hope, which was also stressed by the attendance in the Sõerdi Hall.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller asked Anastassia Kovalenko-Kõlvart to take the floor.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
A representative of the Centre Party confirmed firm support for the draft bill, noted the possibility of reducing VAT on local products as bilateral state support that would help both local businesses and consumers and people's livelihoods, and urged others to share more ideas for upcoming bills.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler emphasized cooperation with the opposition, and that although EKRE’s proposals could make life in Estonia better, he would not offer a future outlook, and he presented a twofold view on local and foreign food, noting that increasing excessive administrative burden and government spending is not sensible, and in the current situation one should focus on food, not add costs, and help families stimulate consumption.
Aseesimees Arvo Aller
AI Summary
Vice-chairman Arvo Aller invites Martin Helmet.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme said that EKRE is a right-wing party and tax cuts are logical, and lowering the value-added tax on food products does not create a significant hole in the state budget, and its impact is overestimated if attention is directed to spending elsewhere. Martin Helme said that EKRE is a right-wing party and tax cuts are logical, and lowering the value-added tax on food products does not create a significant hole in the state budget, and its impact is overestimated if attention is directed to spending elsewhere.
Aseesimees Arvo Aller
AI Summary
The central message of the speech is that it's time for you to act.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler previously praised Martin as a good finance minister, noting that even if the impact is 400 million euros, there are places in the country where we waste a billion or a couple, and he stressed that the more money that is left to people, the more freely they act and the economy will pick up, if a person can come up with a miracle gadget and build a company from it, and he added that Tanel Kiik's speech was strange and perhaps he is thinking of the left.
Aseesimees Arvo Aller
AI Summary
The speech contains only a plea to invite Aivar Sõerd to perform.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd recalled the EKRE government and asked how much the VAT on food products had been reduced, and, separately, by how many percentage points it was lowered for potatoes, fruits and vegetables.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler noted with irony that while in government tax cuts were made, starting with a reduction in fuel prices, which were supposed to curb inflation and leave people with more money, but the lowering of the VAT on foodstuffs could not be implemented, because the government collapsed.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller asks that Helle-Moonika Helme be invited.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
The speaker accuses the Reform Party and coalition partners of mismanaging the state, which has led to a string of crises in the social sector, healthcare and demography, and shows that the ruling elite does not put people’s well-being first but shares the gains with bankers, wind-energy businessmen, and arms traders.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler criticizes the prime minister, saying that he does not act enough to move Estonia forward and improve life, but waits for writings from Brussels and lets things fall apart, and although a show of strength is evident in the execution of some actions, the actual ability to objectively assess Estonia's situation and to take the steps needed for progress is lacking.
Aseesimees Arvo Aller
AI Summary
Vice-chairman Arvo Aller invites Vadim Belobrovtsev onto the stage.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
He criticizes the coalition for dwelling on past accusations, notes that the economic situation during the EKRE–Centre Party era and today is very different, and asks why Estonia does not lower the value-added tax on food like the rest of the European Union countries.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler criticizes the Reform Party as elitist and as thinking others are fools, and points out that although the EKRE and Centre Party government has successfully weathered the crisis and Kaja Kallas has brought Estonia an economic upturn on the European level, they continue with this negative narrative.
Esimees Lauri Hussar
AI Summary
The chair thanked the audience, promised to ask more questions, made a small clarification that there is no Konsum in Viimsi, and invited Vladimir Arhipov to answer.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arhipov criticizes the right-wing government, arguing that lowering the value-added tax on food supports consumption, stimulates the economy, and eases inflation, and asks whether this is really only a matter of ideology, referring to the finance minister's claim that people have to find additional work.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler claims that right-wing and left-wing have blurred in meaning nowadays, and they are often seen simply as slogans that the Reform Party may use to implant into voters' subconscious and in the search for future cooperation partners.
Esimees Lauri Hussar
AI Summary
The speaker noted that the topic touched on the tax shield and its removal, and that this was his very specific position at the time.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
In the presentation it is stated that during the EKRE and Centre Party government COVID-related subsidies and energy subsidies were targeted and helped weather the crises; the Reform Party's and Kaja Kallas's government, by contrast, achieved a strong position in the economy, but the National Audit Office criticizes the transparency of the state budget, and the use of taxes is not clear, which raises the question of what problems you see and how you would solve them.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler called for making the state budget more transparent, saying that the supplementary budget should be mandatory and show the ministries' costs (including the PR department), and he emphasized that the government must be specific about where the money actually goes, although his amendment did not pass, the chair of the finance committee and the finance minister have supported this idea.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar asks Valdo Randpere to perform.
Valdo Randpere
Profiling Eesti Reformierakonna fraktsioonAI Summary
Valdo Randpere said that claims about lowering the value-added tax on food in 25 European countries are not true, pointed to the debate about price increases that took place in Sweden and to the rollback to the previous, unpopular level of taxes, and as a correction noted that there are actually three Konsum stores in Viimsi — two in Viimsi and one on the Tallinn border.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler greets Randpere, confirms that he spoke clearly and is happy about the debate with the coalition MPs, and refers to Viimsi Konsum, saying at the same time that he lives in Võrumaal and that two are in Viimsis and one on the border before Viimsit.
Esimees Lauri Hussar
AI Summary
The chair thanks you for the clarification and gives the floor to Helle-Moonika Helme.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle‑Moonika Helme accuses the elite of power-sharing and of ignoring the concerns of ordinary people and small business owners, and hints that the real reason may be simple – a well-fed person does not understand hunger.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
They note that if the whole family earns a good salary, it is also possible to buy foods with a high VAT.
Esimees Lauri Hussar
AI Summary
The speech is simply a plea to invite Arvo Alleri to perform.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller claims that with a 5% value-added tax, small rural-area entrepreneurs would be able to become visible in the food chain and sell their food to both the general public and to retail chains, which would strengthen rural life and national security.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler emphasizes that increasing consumer confidence and lowering food prices will stimulate the economy and support domestic food producers, because Estonians believe in the value of local food and cheaper prices make it accessible.
Esimees Lauri Hussar
AI Summary
The chair thanks the presenter, notes that there are no questions, and asks to come to this podium and present the discussion that took place in the Riigikogu's Finance Committee, in Diana Ingerainen's presentation as a member of the Finance Committee.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The Finance Committee decided today, April 17, to place the draft bill on the plenary agenda and to appoint Diana Ingerainen as the lead committee's representative, but the vote result was 5 in favor, 2 against, 0 abstentions, and it was decided to reject the draft bill; the discussion focused on the impact of the state budget and the possibility of using reduced VAT rates (for example, 13% and 9%), and it was noted that the minus could be about 400 million euros.
Esimees Lauri Hussar
AI Summary
The chair thanked Rain Epler and invited him to pose at least one question.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler asks whether the opposition's initiatives will be pushed completely off the table and whether this reflects the coalition's arrogance and disregard for the rules, and how he views it, given his fresher perspective in both the committees and the chamber.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Diana Ingerainen admits that it was not discussed in the committee, and she is here, nevertheless, sent by the committee.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Siim Pohlak to perform.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Siim Pohlak asked whether the coalition was looking for solutions related to the value-added tax on groceries and whether there was positive, constructive input from government-coalition MPs.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Although everyone is concerned about coping, we focused on concrete proposals and did not engage in such a discussion.
Esimees Lauri Hussar
AI Summary
The chair thanks the presenter, confirms that there are no questions and that the negotiations begin; on behalf of the EKRE faction, colleague Arvo Aller is requested to come to the Riigikogu's speaking rostrum, and three minutes of additional time are requested.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller calls for lowering the VAT on food to 5% and justifies this by saying that it would increase consumers' purchasing power and ensure better availability of goods on store shelves, referring to the experiences of Latvia and other European countries and calling on the coalition and the opposition to jointly implement the tax reform.
Esimees Lauri Hussar
AI Summary
The chairman, Lauri Hussar, announced the termination of the negotiations and put to a vote the steering committee's proposal to reject Draft No. 593 at the first reading, asking colleagues to take a position and vote.
Esimees Lauri Hussar
AI Summary
44 members of the Riigikogu voted in favor of the proposal, 14 against and there were no abstentions; draft bill 593 has been rejected and is no longer under consideration, and today’s session has ended.