Draft law amending the Alcohol, Tobacco, Fuel and Electricity Excise Tax Act and the Value Added Tax Act (594 SE) – First Reading
Session: 15th Riigikogu, 5th session, plenary sitting
Date: 2025-05-07 23:09
Total Speeches: 71
Membership: 15
Agenda Duration: 1h 12m
AI Summaries: 71/71 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The agenda item considered by the chairperson concerns the first reading of bill 594, an act amending the excise tax act and the value-added tax act, initiated by the Conservative People's Party of Estonia parliamentary group. The bill proposes several reductions in excise rates and a lowering of the value-added tax rate to 5%, in order to reduce the pressure of energy prices on consumers and businesses and to curb cross-border trade. Specifically, it addresses proposals to amend the excise rates for leaded and unleaded gasoline engines, aviation fuel, liquefied petroleum gas, motor fuel gas, diesel fuel, light and heavy heating oil, shale oil, and natural gas, as well as value-added tax rates. The law is scheduled to come into force on August 1st, with the aim of alleviating the impact of energy prices, increasing consumer purchasing power, and improving the competitiveness of businesses.
Decisions Made 1
Bill 594's first reading has been postponed. The bill is dropped from the procedure. Voting result: 45 in favor, 10 against, 0 abstentions.
Most Active Speaker
The most active speaker was pid eoQySqbpowY; likely in the position of initiator/presenter of the draft, from the right-wing political spectrum. He presented and defended the draft's basic principles, explained the planned reductions in excise rates, and emphasized the importance of easing energy prices and reducing border trade.
Aseesimees Toomas Kivimägi
AI Summary
Under the seventh item on the agenda, the draft bill No. 594 to amend the Alcohol, Tobacco, Fuel and Electricity Excise Duties Act and the Value-Added Tax Act is being considered for its first reading, and Riigikogu member Rene Kokk is already on his way to the rostrum.
AI Summary
Rene Kokk presented to the Riigikogu draft bill No. 594, which aims to reduce the excises on alcohol, tobacco, fuel and electricity and the disparity with VAT, in order to ease the cost of living, improve the competitiveness of businesses, and reduce cross-border shopping, and the law would take effect on August 1.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman thanked everyone, informed that there were questions, and invited Aivar Sõerd to speak.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd claims that the bill's starting premise and concept are based on false claims, because oil and gas prices have fallen, and therefore a price shock that would cause a sharp rise in energy prices is not justified.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi urged Martin Helme to perform.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme claims that the state imposes excise taxes on energy carriers, and that reducing them would help consumers and strengthen the competitiveness and revenue of Estonian companies, but at the moment the competitiveness of the Estonian economy is dead.
Aseesimees Toomas Kivimägi
AI Summary
That was just a word of thanks.
AI Summary
Rene Kokk said that the aim of the bill is to help people and businesses by reducing taxes on fuel and alcohol, because lower taxes increase consumption and cross-border shopping, and the state budget should be made understandable and transparent so that cash flows are clear and demagoguery would not be spread.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi invited Anastassia Kovalenko-Kõlvarti to speak.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Although the Estonian Centre Party supports the bill, the speaker warns that increasing the fuel excise duty and the vehicle tax could lead to the bankruptcy of Estonian logistics companies and to servicing for foreign firms, and to accompanying price increases, and asks how big the risk is of such development if the bill is not passed.
AI Summary
Rene Kokk said that the bankruptcies of Estonia's large transport companies stem from fierce competition and the loss of previous compensations, and he stressed the need to create a system that collects road-use charges from all foreign-haulage operators and from roads used for transit.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman, Toomas Kivimägi, asks that Aivar Sõerd take the floor.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd asks why your draft bill left out VAT relief, although EKRE was in government a few years ago and the Centre Party led the government and promised VAT relief in the 2019 elections.
AI Summary
Rene Kokk thanked Aivar, noting that the proposal is likely to secure Aivar's vote in favor, and today they are trying again with something that never passed before, because strong politicians understand the need to correct mistakes.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi invites Siim Pohlaku to speak.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Siim Pohlak wants Estonia to apply to the European Union for an exemption and a temporary zeroing of fuel excise duties on gasoline and diesel, arguing that current taxes are higher than the EU minimum and that the money isn't going toward road repairs.
AI Summary
Rene Kokk claims that the interests of the Estonian people and of entrepreneurs are not the government's priority, and that political choices, such as investing a billion euros in wind energy and the construction of Rail Baltica, are undertaken in the name of European praise, which is why he calls for examining exemptions and for improving budget transparency so that the economy and employment would recover.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi asks Martin Helme to speak.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme answered Aivar's question that we will indeed implement tax cuts and are planning a reduction of the diesel excise tax and a reduction of VAT on food products, but the tax cuts promised two months ago have not yet been implemented in the current government, and the Reform Party's forecasts should not be taken seriously.
AI Summary
Rene Kokk accuses the Social Democrats of hypocrisy, recalling how they, in prior years while in opposition, demanded a reduction of the VAT on groceries, but the proposals fell through, and now there is again talk of a fight for it.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi asks Anastassia Kovalenko-Kõlvarti to come on stage.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart emphasizes that Estonia was not the country in Europe with the largest economic downturn or price increases during the Centre Party and EKRE government, and has successfully emerged from the COVID crisis, but the cost and completion uncertainty of the multi-billion-euro Rail Baltica project and the Ülemiste terminal for trains, which in the future will cost 70 million euros, indicate large infrastructure investments, and it is not yet known whether we can finish building it.
Aseesimees Toomas Kivimägi
AI Summary
The deputy chairman, Toomas Kivimägi, expresses thanks.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
He asks for an assessment of whether now is the last moment to make a change, in the course of which all taxes would be directed to road construction.
AI Summary
Rene Kokk stressed that the use of taxes and where the money goes must be clearly shown; otherwise people will lose trust and the risk of the shadow economy will grow. At the same time, funding for roads and municipalities is extremely low, and the acquisition of land for Rail Baltica and court disputes create uncertainty about the project's future.
Aseesimees Toomas Kivimägi
AI Summary
The deputy chair asks Evelin Poolametsa to speak.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
In Estonia, electricity prices have recently often been higher than the European average, which burdens especially low-income families and rural areas, and also affects Estonian companies, and although the electricity tax is one of the price components that the state can regulate, the presenter asks whether the state could come to the aid of entrepreneurs and what that would entail.
AI Summary
Rene Kokk claims that reducing the electricity excise tax could help both households and businesses with their costs, but his main problem is the officials' lack of accountability and ill-considered decision-making, which has brought Estonia into a more expensive price zone, with the 2018 Estonia-Latvia third interconnection and discussions about EstLink 3 cited as examples behind it.
Aseesimees Toomas Kivimägi
AI Summary
A plea was addressed to Vladimir Arhipov during the speech.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov criticizes the government's tax policy, arguing that the value-added tax increase raises prices and consumer costs, reduces purchasing power, and harms the economy, and asks why such decisions intended to cover budget gaps are made and the economy is harmed in this way.
AI Summary
Rene Kokk claims that many policymakers do not know what they are deciding about, using the discussion of the alcohol tax as an example and showing the reality in which cross-border trade and the mass movement of construction materials from Lithuania and Poland, and the absence of taxes, confirm that calculations are often simplified, and he calls on authorities to use precise starting data and clear memos so that policy does not fail.
Aseesimees Toomas Kivimägi
AI Summary
This is a short prayer directed toward Anti Poolametsa.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets spoke about a meeting held in Rakvere, where a woman praised that, once in power, promises were fulfilled and the lowering of excise taxes affected the service sector and cross-border trade disappeared, which provided people with jobs, and she asked whether this matches the listeners' experience.
AI Summary
Rene Kokk claims that tax cuts worked and that entrepreneurs are on board with them, but they don't complain all the time, and if doing business in the country becomes uncomfortable or no longer profitable, they move elsewhere, something decision-makers often do not understand.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi asks Arvo Alleri to come on stage.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller said that lowering excise duty and value-added tax would reduce food prices, accountability must lie with politicians, and taxing the rich does not work, so that the Estonian economy would function and food would be affordable.
AI Summary
Rene Kokk calls the aid given to the coalition a desperate lure and emphasizes that lowering excise taxes and value-added tax could return money to society through companies and taxpayers, and it's not simply 1+1=2, but it involves gray tones and the effect of tax revenues being recycled back into the economy.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman, Toomas Kivimägi, asks Helle-Moonika Helme to take the floor.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme said that living in Estonia has become difficult and at times impossible because of taxes, which leads to mass emigration, with young people going, for example, to Spain.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman, Toomas Kivimägi, thanks the listeners.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
If we continue like this, our people will drift apart, and the future will show where we will end up in this way.
Aseesimees Toomas Kivimägi
AI Summary
There are no more questions; next, Aivar Sõerd, a member of the Finance Committee, will provide a brief summary of the discussion and the decisions made there.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Finance Committee discussed Draft Bill 594 to lower the VAT rate to ease energy prices, noted that the impact is not financially covered, and decided to bring the draft to the plenary, designate the lead committee's representative as the speaker for this debate, and propose rejecting the draft (6 in favor, 2 against).
Aseesimees Toomas Kivimägi
AI Summary
The presentation was so thorough that you have only one question.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
He asks whether the commission discussed the Reform Party's deceitful conduct, according to which the main act had long stipulated that the fuel excise would go to road repairs, but by the end of 2014 or in 2015 this link was terminated during Taavi Rõivas's government, and whether it was also discussed who the finance minister was at that time and why the decision was made.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd said that the first point of the draft bill's explanatory memorandum, which asserts a reduction in the rapid rise of energy prices, is false, because the price of oil has fallen and production on the world market has increased.
Aseesimees Toomas Kivimägi
AI Summary
During the speech, Varro Vooglaid is asked to come up and speak.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vooglaid criticizes analyses that calculate the impact of lowering the excise rate on the state budget simply with linear calculations and do not take changes in consumer behavior into account, and asks what the point is of making such primitive analyses at all if they do not reflect reality.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd explained that the question is actually directed at the initiators of the draft bill, and in the committee this was the only question whether the draft's authors had made calculations regarding additional state budget resources, and Rain Epler noted that the calculations that existed at the time of submitting the draft are now outdated and new ones must be prepared and submitted.
Aseesimees Toomas Kivimägi
AI Summary
This is Helle-Moonika Helme's invitation to give a speech.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helme emphasizes that high energy prices are at the local level, and one should look at the price boards at gas stations, not at world market prices, and he accuses the Reform Party of raising taxes.
Aseesimees Toomas Kivimägi
AI Summary
The speech was short and focused solely on gratitude.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd emphasized his modest role as a representative of the commission, said that after his presentation a round of negotiations would begin for exchanging the factions' impressions and positions, and mentioned the possibility of an outing to observe gas-station prices.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi invited Rene Kokk to speak.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Aivar Sõerd emphasizes that such conclusions cannot be drawn, and oil prices on the world market have fallen, reaching the level seen in 2021, which is an important context for the objective of your draft bill to mitigate the impact of the price shock caused by the sharp rise in fuel prices.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman, Toomas Kivimägi, asked Varro Vooglaid to speak.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vooglaid emphasizes that oil prices may rise again, and the country needs an institution that would conduct scientifically based analyses and scenario models of the impact of changes in excise rates, because a single member of the Estonian Parliament cannot independently build such models.
Aivar Sõerd
Profiling Eesti Reformierakonna fraktsioonAI Summary
Sõerd said that this is not their task and they lack the resources and skills to carry out such analyses, which is why the Finance Committee relies on the calculations of experts and qualified analysts, which are carried out, for example, by the Ministry of Finance, the Bank of Estonia and commercial banks, and if necessary the Development Monitoring Center may also provide assistance.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman thanked everyone, announced that there were no further questions, opened negotiations, and asked Martin Helme to speak on behalf of the EKRE faction.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme claims that Reform Party's talk of a tax cut has failed and the EKRE government's excise tax cut brought benefits to the economy: consumption in Estonia increased, cross-border shopping ended, and VAT revenue rose, so that the loss from the excise tax cut was offset.
Aseesimees Toomas Kivimägi
AI Summary
Unfortunately, the given speech is very brief and lacks substance, so it is not possible to provide a one-sentence summary; please include the full speech.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme claims that the example of the alcohol tax proved how wrong the experts' statements were, accuses the government of misunderstanding the budget and taxes, and states that during their tenure the national debt has doubled.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks, notes that it was quite harsh, and on behalf of the Estonian Centre Party faction Vladimir Arhipov asks for the floor.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov emphasizes that the bill, which would reduce gasoline, diesel, and gas excise taxes as well as the value-added tax by 5%, could have a positive impact on the economy, but he warns that the current tax increases burden consumers and businesses and would deepen the difficulties of the elderly and low-income families, and he calls on the state to consider cost savings and to follow the experiences of other countries to revive the economy.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi asks for three more minutes for the session.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov emphasizes that the rising cost of living threatens the underprivileged and pensioners and calls for considering alternative solutions and a review of expenditures at the state level, stressing that tax policy must be fair and transparent and that the aim is not to fill the state treasury at any price, but to help people and businesses in difficult times, and therefore lowering excise duties and value-added tax is essential and justified.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi ends negotiations, confirms that the lead committee wishes to reject Bill 594 at its first reading, and puts this proposal to a vote.
Aseesimees Toomas Kivimägi
AI Summary
In the Riigikogu, 45 voted in favour, 10 against, 0 abstentions; the proposal found support, and bill 594 has been rejected and is no longer under consideration.