Taxes
Session: 15th Riigikogu, fifth sitting, information briefing.
Date: 2025-05-14 16:22
Participating Politicians:
Total Speeches: 17
Membership: 15
Agenda Duration: 16m
AI Summaries: 17/17 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The focus of the seventh question was on taxes and tax changes, including proposals related to vehicle tax and the objections to them. Urmas Reinsalu presented a critical view of the government's tax package and made a specific proposal to abolish vehicle tax, citing the burden of obligations associated with implementing climate goals. The second part addressed issues related to Natura areas and forestry, where concerns were raised regarding draft laws 610 and 612 SE and the suspension of management over an area of 40,000 hectares; it was brought up how these restrictions affect the economy and how they or their interpretation could be clarified. In addition, the procedure for conducting the session and the nature of the information hour were discussed as a tool for obtaining information and debates about how to obtain yes/no answers to specific questions.
In summary, the focus was on two main themes: (1) taxes and the vehicle tax issue, including plans for income tax, value-added tax, and corporate taxation, as well as doubts and considerations regarding the potential abolition of vehicle tax; (2) restrictions on forestry and Natura areas and their possible impact on the economy, along with discussions of the government and coalition's positions and future principles (e.g., 70% of forest management). In addition, organizational and information development issues were highlighted, how the format of the information hour and the form of answers can influence the impact and results of the discussions.
Decisions Made 1
No decisions were adopted; this session focused on discussion and the presentation of the government's positions, and no specific parliamentary decisions were made.
Most Active Speaker
The most active speaker was Prime Minister Kaja Kallas (Isamaa, a better government). His activity is evident in his repeated responses and comments regarding tax policy and the technical nuances of bills; in terms of position, he has been characterized as a representative of a right-wing government figure.
Esimees Lauri Hussar
AI Summary
Riigikogu member Urmas Reinsalu is submitting the seventh question to Prime Minister Kristen Michal concerning taxes.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu stated that the government submitted a major tax package to parliament for proceedings, under which they plan to permanently increase the rates for income tax, VAT, and corporate income tax, as well as increase the taxation of fringe benefits and the entrepreneurship account. Furthermore, he presented a specific proposal to cancel the car tax, arguing that car sales have fallen, climate objectives have not been met, and people are being forced into difficult choices.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal promised that by 2026, tax reforms will be implemented, aimed at reducing the overall tax burden. These changes include raising the income tax-free minimum to 700 euros and abolishing both the profit tax and the income tax levied on the first euro earned. This is expected to provide an employee earning the average salary with approximately 1,500 euros of additional annual income. For pensioners, the income tax-free minimum will remain higher than 700 euros. Furthermore, although income tax and VAT will remain at 24%, defense spending will be increased to at least 5% of GDP, with funding covered by taxes and, if necessary, loans.
Esimees Lauri Hussar
AI Summary
The Chairman thanks [the previous speaker] and asks Urmas Reinsalu to present a clarifying question.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu is submitting a concrete proposal to the Prime Minister: the car tax must be scrapped, as it has proven a failure in its initial months, increasing the tax burden primarily for low-income earners. Secondly, he asks how they envision the year 2029.
Esimees Lauri Hussar
AI Summary
The speech emphasizes that now is your time to act.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
He/She emphasizes the disclosure of the amount of additional tax revenue within the context of the state budget strategy, so that the Estonian people have a four-year outlook.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offers his thanks and submits a request to the Prime Minister.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal stated that the tax hump was established by the Isamaa–Center Party–Social Democrats coalition and must be changed: the income tax-free minimum will rise to 700 euros and the tax system will become simpler. Consequently, starting next year, a person earning the average salary will have about 1,500 euros more net income. Simultaneously, defense expenditures are increasing, the budget is in deficit, and loans will be taken out.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar expresses his thanks and announces that the supplementary question will be asked by his colleague, Andres Metsoja.
Andres Metsoja
Profiling Isamaa fraktsioonAI Summary
Andres Metsoja expresses concern that government bills 610 and 612 SE propose prohibiting forest management on over 40,000 hectares of Natura areas, allowing owners to use the forest only for firewood. This could potentially harm the economy and the state budget, and may have been implemented without the required impact assessment.
Peaminister Kristen Michal
AI Summary
Next year, the government will lower the tax burden, abolish the corporate profit tax, and raise the tax-free minimum income to 700 euros. It will also create a uniform tax system and reduce restrictions and bureaucracy, while simultaneously establishing a principle in forestry that 70% of forests are available for economic utilization and 30% are under protection.
Esimees Lauri Hussar
AI Summary
The Chairman thanked the floor, concluded the debate on the seventh item, and announced that before addressing the eighth item, the procedure for conducting the sitting would be discussed, inviting Urmas Reinsalu to take the floor.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu greets the Speaker of the Riigikogu and says that they are now here, just the two of them.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar emphasizes that there are more of us.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu submitted his question regarding taxes to the parliament in writing. He posed two specific questions to the Prime Minister, asking about the cancellation of the car tax experiment and expecting a simple yes-or-no reply, but the information session failed to provide a concrete answer.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar explained that he cannot intervene in the Prime Minister's responses, and the answer provided regarding the issue of taxes reflects the government's position.