Draft law amending the Enterprise Income Tax Simplification Act, the Security Tax Act, and the Income Tax Act (645 SE) – First Reading
Session: 15th Riigikogu, 5th session, plenary sitting
Date: 2025-05-20 14:20
Total Speeches: 134
Membership: 15
Agenda Duration: 2h 38m
AI Summaries: 134/134 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu discussed bill 645 last week, submitted by the Riigikogu Board for its first reading, which combines three government initiatives: the simplified tax law for entrepreneurial income, the security tax law, and the amendment to the income tax law. The presentation was given by the Minister of Finance, Jürgen Ligi, whose speech emphasized the aim of further simplifying tax funding and reducing the tax burden, as well as eliminating the temporary nature of the security tax. The bill envisions extensive changes: the abolition of income tax for individuals from the very first euro and the setting of a 24% tax rate, the elimination of the tax bracket system alongside the retention of a €700 tax-free allowance, and a 24% income tax and turnover-based system for businesses. Additionally, a 24% VAT rate is stipulated, and the dates of entry into force for the changes are established: VAT on July 1st of this year, and income tax from January 1st, 2026. The focus of the discussion was the impact on the economy and the budget: the estimated revenue loss is approximately €234 million per year, but discussions were held considering economic growth and defense spending in the long term. Reference was also made to the economic context of defense and security narratives, and the need to ensure long-term funding and plan procurements with a longer timeframe.
Decisions Made 1
The sitting was extended until the agenda was exhausted, but no later than 14:00. Supported by 48 members of the Riigikogu, opposed by 6, with 0 abstentions.
Most Active Speaker
Varro Vooglaid (an active commenter; a technically external opposition figure; position: other) is one of the most active speakers, representing strong criticism of the government’s tax policy and attempting to emphasize his view on the place of democracy and the mandate with such rhetoric. He presented long and sharp arguments and, wanting to draw attention to tax and political responsibility, made the dialogue susceptible to a strongly partisan tone.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announced that the fifth item on the agenda is the first reading of Bill 645, initiated by the government, which concerns the simplified taxation of business income, amendments to the Security Tax Act and the Income Tax Act. The bill will be introduced by Minister of Finance Jürgen Ligi.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi submitted a draft bill that abolishes the time limit on the security tax, sets the income tax and VAT rates for everyone at 24%, and, by harmonizing the tax bases, introduces a €700 tax-free allowance. Furthermore, corporate taxation will be modified to reduce the tax burden and stimulate the economy. The changes will enter into force for VAT on July 1st, and for income tax on January 1st, 2026.
Aseesimees Arvo Aller
AI Summary
The address begins with thanks, followed by the mention that there are also questions, and Vladimir Arkhipov is then invited to take the floor.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov criticized the tax policy of the government and the Reform Party, saying that the taxes raised under the banner of defense spending are burdening working people, and that there is no evidence of state cost savings or a fairer tax distribution.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that the government is making cuts, but defense spending will grow to 5.4% of GDP, and the tax burden is rising. This is a major and significant budget change, and we must talk about it directly, not using pre-written scripts.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller gives the floor to Lauri Laats.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats stated that the previous belief—that everyone, including entrepreneurs, should make a solidarity contribution to security—was wrong, and the draft legislation modifies the initial plan by increasing the employees' share of the cost going forward.
Aseesimees Arvo Aller
AI Summary
The message says that now is your time.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
The income tax increase is becoming permanent.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi states that the government is not raising taxes and the tax burden is set to decrease, as the first 700 euros will be made tax-exempt and the tax bulge will be eliminated. He further stresses that the contribution of entrepreneurs to society is just as crucial as that of everyone else, even as Putin is simultaneously increasing the tax burden across the whole of Europe.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invited Aivar Kokk to speak.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk accuses the government of lying. He recalls that during the tenure of Isamaa and the Centre Party, the Estonian economy was the fastest growing in Europe. He further claims that the planned introduction of the 2% corporate income tax and the income tax exemption for high earners has not taken effect, yet 700 million euros are currently being taken from the state budget. He asserts that, in his view, the Reform Party’s ultimate goal is simply "all taxes," and he concludes by asking how the withdrawal tax for the second pension pillar has been set under this new law (is it 20%, 10%, or something else?).
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi confirms that increasing the tax-free minimum and simplifying the tax system will bring greater fairness and provide incentives for the economy. He also accuses the Reform Party and the Centre Party of failing to deliver on promises regarding the tax hump, and pledges that next year both people and the economy will feel the financial benefits, and the system itself will become clearer, more understandable, and fairer.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invited Andrei Korobeinik to speak.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik claims that Estonia has been the European Union's worst economic performer for three consecutive years due to taxes being raised during the crisis. He further alleges that the government is being managed under Putin's influence and raises questions about how and why he orchestrates this in Estonia—is it through the prime minister or directly with him?
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi asserts that the issue lies with the opposition's incompetence, not their specific party, and urges them to demonstrate political competence and patriotism, all while explaining the state of the Estonian economy and refraining from defending Putin.
Aseesimees Arvo Aller
AI Summary
The address is merely a brief request: "Anti Allas, please!"
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas raises the question of how long Estonia can sustainably allow companies to freely move a significant portion of untaxed profits out to purchase real estate, noting that he doesn't see how this increases productivity, and asks why they aren't considering raising the value-added tax (VAT), which would also affect the poor.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that the competitiveness of the Estonian tax system is increasing due to a broad consumption tax base and the abolition of taxation starting from the first euro, while simultaneously emphasizing the restraint of labor taxes, a high tax-free minimum, and the taxation of corporate income only upon distribution as beneficial solutions.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Varro Vooglaid to speak.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Varro Vooglaid accuses the government of tax hikes and lying, claiming that the Reform Party and Eesti 200 have increased taxes, and is calling for snap elections to gain a mandate.
Aseesimees Arvo Aller
AI Summary
This is a call to action, because your time has come.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi emphasizes that the tax system must be competitive and funding sustainable, accuses the opposition of defending Putin and inadequately addressing patriotism, and confirms that although previous governments raised taxes and the deficit for national defense stood at 5.4% of GDP, they are now reducing the tax burden compared to the original plan.
Aseesimees Arvo Aller
AI Summary
In the meantime, a procedural question was raised, and Varro Vooglaid was requested.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Varro Vooglaid emphasizes that the Reform Party and Eesti 200 do not have the voters’ mandate for such tax increases, and he asks directly whether it is possible for him to receive an answer without being scolded or reprimanded by anyone.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller noted that, procedurally, he cannot intervene in the minister’s response. The minister might have misunderstood the question, and every member of the Riigikogu is entitled to ask two questions. He then invited Vladimir Arhipov to the podium.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov accuses the government of turning a temporary fib into a permanent lie: they promised the security tax would be temporary until 2028, but in reality, the taxes have been rebranded and structured as a permanent increase—income tax at 24% and VAT at 24%—and they are hoping nobody notices.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi confirms that he holds a personal and party mandate and will not change his tax policy in a populist manner. He states that the necessity for tax increases stems from Russia’s aggression, defense expenditure, and budget discipline—with the next Riigikogu making decisions for 2027–2028. Ligi asserts that he is not lying and that plans are underway to eliminate old tax errors.
Aseesimees Arvo Aller
AI Summary
The Deputy Speaker called Lauri Laats to speak.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats accuses the government of breaking promises, citing the scandals involving Autorollo, party financing, and the money laundering at Danske Bank. He points out that the Reform Party was in power during the period of Putin's money laundering and asks why solidarity liability does not apply to entrepreneurs and why they are unwilling to implement this change.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi confirms that Estonia was highly effective and innovative in preventing money laundering at the time. He explains the restrictions that limited the minister and the supervisory authority regarding the monitoring of bank accounts, recalls the Danske and Autorollo cases, and blames the opposition and the leadership of the Reform Party, but he emphasizes the contribution of entrepreneurs to society and calls on everyone to try again.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut debated the IMF's remarks concerning the tax hump: although the tax hump is complicated, the IMF advocated for its budget-neutral and fair abolition, and the replacement of the stepped income tax exemption with graduated taxation of income. She questioned why the second IMF recommendation was not followed, and raised options for broadening the tax base, including moving towards property and capital taxes, instead of merely increasing dividends and VAT.
Aseesimees Arvo Aller
AI Summary
This address is a brief request to Riina Sikkut.
Rahandusminister Jürgen Ligi
AI Summary
The IMF did not issue a directive, but only general recommendations. However, the Estonian government derived clearer steps from these, such as the car tax and the restoration of the second pillar, and the IMF subsequently praised these measures, stressing that Estonia's tax system is superior to those of other countries.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller asks Tanel Kiik to come forward and speak.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik couldn't grasp the government's reasoning for choosing a VAT hike—a measure that disproportionately affects low-income individuals twice as hard compared to the wealthy—when implementing a progressive income tax would have been an option.
Rahandusminister Jürgen Ligi
AI Summary
Jürgen Ligi emphasized that it is necessary to use a neutral, broad-based tax system, where an increase in VAT is less harmful to the economy than an increase in income tax, and tax exemptions must be abolished in accordance with the recommendations of the IMF and the OECD.
Aseesimees Arvo Aller
AI Summary
The speech urged listeners to hear the minister out.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi defends the tax system, recalling the 2015 coalition negotiations aimed at increasing the tax-free minimum, and emphasizes that the wealthy pay more through consumption, which is why the system must be preserved.
Aseesimees Arvo Aller
AI Summary
Lauri Laats asked the chairman of the session a question.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats asks whether there is a provision in the work or house rules that regulates a situation where a speaker labels others, lies, exaggerates, and fails to provide accurate information at the public podium, and whether in such a case it is possible to call the speaker to order.
Aseesimees Arvo Aller
AI Summary
The Chair listens to both the questioner and the presenter, and the transcript will later allow every voter to draw their own conclusion; next, Züleyxa Izmailova, please.
Züleyxa Izmailova
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Züleyxa Izmailova presents a critical assessment of the Reform Party's tax policy, emphasizing that Estonia needs a progressive income tax and a wealth tax, and asks whether the party leader agrees with these reforms or if he refers to mandatory military service for women, Israeli-style.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi refutes the slander, recalls Estonia's success in combating money laundering and his team's contribution, and emphasizes that he came to discuss the draft bill, the purpose of which is to improve the tax structure, lighten the tax burden, and increase the competitiveness of the tax system, not to address accusations against the Reform Party.
Aseesimees Arvo Aller
AI Summary
Arvo Aller announced that there are now a few procedural questions for the presiding officer, and Anastassia Kovalenko-Kõlvart is invited to speak first.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart requested that the presiding officer call the Minister of Finance to order, arguing that substantive answers were not being given to her questions and that she was being accused of using the "Russian card" smear tactic, all against the backdrop of coalition-related money laundering and theft of donations—a serious context against which the proposed bill regarding the 24% VAT and income tax urgently requires a clear response.
Aseesimees Arvo Aller
AI Summary
Arvo Aller emphasized that Bill 645 must be discussed and that efforts should be made to remain within its scope, noting at the same time that references to historical descriptions may occasionally be made. Finally, he asked Lauri Laats to present the last procedural question.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats urged everyone to stick to the topic, pointing out that the minister had strayed from the subject of today’s bill and had labeled EKRE, the Centre Party, and the Social Democrats. He stressed, however, that he himself had not called anyone a money launderer, and he mentioned scandals involving the Reform Party detailed online, which, he added, were irrelevant to his own views. He concluded by asking that the debate remain strictly within the framework of the proposed legislation.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller explains the procedural rules concerning the bilateral dialogue and informs the chamber that the Reform Party faction wishes to extend today's sitting until the agenda is completed, but no later than 2 PM, a matter which will now be put to a vote.
Aseesimees Arvo Aller
AI Summary
The proposal received 48 votes in favor, 6 against, and there were no abstentions. We will now move on, and the next question is from Anti Allas.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas asks why we give entrepreneurs handouts and allow them to take money out of the country tax-free to buy real estate in warm countries, how the Estonian state benefits from this, and why, at the same time, foodstuffs are being taxed with a VAT rate 10% higher than in Finland.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi thanked the Riigikogu for the extension and for staying on topic, noting that he and his party had been slandered and that the accusations related to criminal cases were entirely different, and urged everyone to remain dignified.
Aseesimees Arvo Aller
AI Summary
The discussion continues to focus on topic 645 SE, and Lauri Läänemets is invited to speak.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
He/She thanks the esteemed Chairperson of the session.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi apologizes for not having responded yet and mentions the gift.
Aseesimees Arvo Aller
AI Summary
He notes that "Thank you!" has already been said, and we will now move on to Lauri Läänemets. If your notes are ready, you may continue from the same point.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi promises to respond in the next answer.
Lauri Läänemets
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Lauri Läänemets criticizes the government for defending an ideological tax system that fails to support the Estonian economy or the middle class, instead leaving the wealthy untouched while burdening the average Estonian family and those with lower incomes. He demands a clear and logical explanation of how making the increased VAT permanent would benefit the average Estonian family and those with lower incomes.
Aseesimees Arvo Aller
AI Summary
The central message of the address, "Your Time!", calls on listeners to embrace their moment and take action.
Rahandusminister Jürgen Ligi
AI Summary
According to Finance Minister Jürgen Ligi, this reform strengthens the state's finances and defense capabilities, ensures the state can function and continue with procurements, and although income up to 700 euros is tax-free and taxes will not disappear entirely, the interest of the average citizen and the competitiveness of the economy will improve.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller called upon Varro Vooglaid to speak.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vooglaid raised the principal question of whether the Reform Party actually received a mandate from the people for massive tax hikes, and if they did not, then based on the principles of democracy, snap elections should be called before the program is implemented.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi confirmed that his mandate is dedicated to long-term state finances and that he does not support snap elections. He stressed the existing risk of tax hikes and stated that taxation should not be a subject for a referendum, even though the budgetary context might sometimes necessitate tax increases.
Aseesimees Arvo Aller
AI Summary
Varro Vooglaid posed a procedural question to the chairman.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Varro Vooglaid claims that the same situation is repeating: last time he didn't receive an answer, he submitted a procedural question and was allowed to ask a second time, but he didn't receive an answer this time either.
Rahandusminister Jürgen Ligi
AI Summary
The speech by Finance Minister Jürgen Ligi centers on the question "To what?"—that is, what we are truly focusing on and where we are directing our resources.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Varro Vooglaid accuses the Reform Party and Eesti 200 of claiming a mandate for tax hikes, questioning where and when this mandate was obtained and why they are failing to provide an answer. He emphasizes that taxes must not be raised without a mandate, rendering the promise made to the public invalid.
Aseesimees Arvo Aller
AI Summary
Procedurally, the Chair cannot forward this question, but if the rapporteur recalled it, he will answer it during the next question. Before moving on, we welcome the President of the Republic of Botswana, Duma Gideon Boko, who is on a state visit and is currently on the balcony, and we say, "Welcome to Estonia." We will then continue with Bill 645. For the next question, Vadim Belobrovtsev, please.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev asks the minister why they are abolishing the tax hump and implementing a flat income tax rate, considering that this approach was perhaps popular in Europe about 20 years ago, and now most countries, especially European Union members, have shifted towards a progressive tax system.
Rahandusminister Jürgen Ligi
AI Summary
Jürgen Ligi explained that the draft bill addresses only the tax-free minimum, not the progressivity of taxation, and confirmed that the Estonian tax system is competitive and economic freedom is at a high level, which makes the country attractive and compensates for the difficulties arising from the scarcity of natural resources and historical factors.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller invites Jaak Aab to take the floor.
AI Summary
Jaak Aab voiced concern over the budget drafting process and questioned why 200 million euros from the Cohesion Fund was being allocated to national defense. He suggested that the funds could instead be drawn from projects run by the Ministries of Climate and Education (such as the Climate Ministry’s apartment building renovation program and the Education Ministry’s adult education and research initiatives). He also stressed that people’s daily expenses are increasing due to the rise in VAT.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stated that his draft legislation constitutes tax relief, not a tax hike, emphasizing the long-term perspective and the restriction established for three years, while denying the existence of a parallel income tax system. He pointed out, however, that income tax has already been raised and special taxes have been implemented.
Züleyxa Izmailova
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Züleyxa Izmailova asks how Estonia can serve as a role model for AAA-rated countries as a strong state in terms of taxation and finance, when your party leaders fail to explain how to implement the progressive income tax and wealth tax systems of those countries.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker of the Riigikogu Arvo Aller addressed Züleyxa Izmailova and said to her, "Please!"
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that achieving an AAA rating begins with economic stability, noting that ratings are primarily determined by macro risks and general prosperity, not by government decisions. While Estonia has a lower debt burden and is ahead of Latvia and Lithuania, the AAA level is generally exceptional, and objective factors are ultimately what determine countries' ratings.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Allerr invited Andrei Korobeinik to speak.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik raises the question of why it was said that the security tax is temporary, why the draft bill makes it indefinite, and what the logical reason for this step is, considering that a new government might repeal it after the elections.
Rahandusminister Jürgen Ligi
AI Summary
In light of geopolitical changes, the Minister of Finance announced that the US is no longer committed to Europe and Estonia must defend itself. At the same time, he emphasized that irregularities in the tax system must be resolved, tax rates must be raised, and parallel systems must be avoided. Furthermore, there is no point in discussing a three-year timeline, because a new government can change taxes.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invited Anastassia Kovalenko-Kõlvart to speak.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart emphasizes that the economic resilience of the people is the economic resilience of the state, and the strength and security of the state depend directly on the well-being of its citizens, rather than the state and the people existing on separate levels of economic viability.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi said that the bill reduces taxes and makes life easier for taxpayers, but for the sake of national strength, taxes must be made permanent in the future, and the threat of war and the fear of Russians coming affects families' decision not to have children, which is not the choice of the Estonian state.
Helmen Kütt
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Helmen Kütt stresses that while everyone desires the country to be secure, tax hikes have put many people in a difficult position. She then asks whether there are plans to reintroduce the option for subscribing to government bonds, an option previously available to both private individuals and legal entities.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller called upon Helmen Kütt to speak.
Rahandusminister Jürgen Ligi
AI Summary
Jürgen Ligi stressed that the state and citizens are closely bound by solidarity, and a better-functioning state requires standardized services and sound finances. This includes tax changes, such as the abolition of the special income tax, and the use of bonds as a state borrowing instrument, in order to help the vulnerable and facilitate access to employment.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller notes that, in his estimation, 645 SE met the requirements of the bonds, and directs Anti Allas to pose a question to the chairman.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas noted that the Minister of Finance has repeatedly said that people should ask questions here in this chamber, but he failed to answer my substantive question twice.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller said that he did not find a connection to the procedure, noted that two questions had been mentioned, and then called upon Vadim Belobrovtsev to speak next.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Belobrovtsev emphasizes that although the minister claims countries that implemented a graduated income tax have made mistakes, Latvia and Lithuania have been using a progressive income tax for years, and the flat tax club is quickly emptying, leaving only Bulgaria and Romania. He then asks whether the Estonian government, along with the Reform Party, is considering deciding in favor of a graduated income tax.
Aseesimees Arvo Aller
AI Summary
This is a brief but compelling call: it’s your time, and you need to act.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
He claims he can manage fiscal and tax affairs better than all European Union countries, with the exception of just a few.
Rahandusminister Jürgen Ligi
AI Summary
I argue that avoiding populist tax solutions and learning from past mistakes in fiscal policy are crucial, especially since the tax burden exceeds 40%. Furthermore, strict control over the state budget and defense spending is extremely important.
Aseesimees Arvo Aller
AI Summary
This is Deputy Chairman Arvo Aller's brief request to Aivar Kokk.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk asks whether the security tax has been completely abolished, and if so, what the percentage rate for withdrawing money from the second and third pillars would be, and what that rate would be in 2026, in order to prevent a situation where people withdraw money in anticipation of a potential increase in the rate.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi explains that there will be no additional 2% relief for pensions. He confirms that the 10 and 20 percent contribution rates will remain in the pension system, which he intends to protect, and emphasizes that the accumulation of pension funds must be attractive, adding that he does not favor a progressive structure.
Aseesimees Arvo Aller
AI Summary
Rene Kokk is called upon to speak.
AI Summary
Rene Kokk voiced his concern over the tax increases and inquired whether the government is discussing a reduction in the number of civil servants to alleviate the administrative burden. He stressed the need to raise officials' salaries for retention purposes, adding that tax hikes are no solution unless the state is made leaner.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stated that the bill represents a tax reduction, not a tax increase, justifying this stance by citing the war and past budget deficits. He emphasized that civil servants, as well as education and medical workers, are valuable and deserve a decent wage, adding that the major costs are allocated elsewhere, noting that the issue is multi-faceted.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Riina Siktig to speak.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut pointed out that the OECD's assertion that the value-added tax is not detrimental to the economy does not change the fact that food basket prices are on the rise. She then asked what compensatory measures the state could plan, for example, by increasing subsidies for school meals or hobby education, or by raising the subsistence level.
Aseesimees Arvo Aller
AI Summary
This is a brief thank-you message that highlights the value of the listeners' time and expresses gratitude to them.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi stresses that the coalition’s priority is improving the well-being of the poorest citizens. To this end, he has backed the reinstatement of the tax-free minimum and the increase of both the subsistence level and the basic pension component, even though the amounts appear small and their implementation hinges on the final coalition agreement.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller asks Rene Kokk to come forward.
AI Summary
Rene Kokk notes that taxes are rising and the tax burden is not decreasing. He calls on the state to review the number of civil servants—especially white-collar workers—and asks if this issue is being addressed, while simultaneously stressing that the number of police officers and rescuers must not be reduced.
Rahandusminister Jürgen Ligi
AI Summary
Finance Minister Jürgen Ligi confirms that the draft bill will reduce the tax burden, restore the basic income tax exemption, and keep both state finances and citizens secure, stressing that the poorer a person is, the more dependent they are on the state.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller thanked the participants and announced that the floor would next be given to introduce the discussion held in the lead committee, and that the rapporteur would be Maris Lauri, a member of the Finance Committee.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
Maris Lauri stated that the Finance Committee debated the draft bill during two sittings: at the extraordinary sitting, it was added to the agenda and the committee's representative was appointed. On May 19th, the Minister of Finance presented the bill, and the discussion focused on the various income streams of the population, including pensioners. The committee then voted to conclude the first reading, with 6 votes in favor and 3 against—a vote which I personally supported.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller offered his thanks, announced that there were no further questions and that the rapporteur had departed, and subsequently opened the floor for debate among the factions, inviting Aivar Kokk to speak on behalf of the Isamaa parliamentary group.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk stated that the draft bill and the coalition's tax policy will not improve people's lives; instead, they will heavily burden them. This is because the Reform Party's long-term plan to make 700 euros tax-free for everyone and add a 2% profit tax will cost the public about two billion euros annually, yet we will only receive back approximately 550 million, and the money will be taken from defense funding.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar requests that the discussion last three more minutes.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk argues that increasing tax exemptions is unreasonable and that state expenditures must be cut. This requires finding 300 to 500 million euros in savings, reducing the number of officials, and lowering administrative costs, because skilled labor is needed in the private sector and the queues at the Unemployment Insurance Fund are growing.
Aseesimees Arvo Aller
AI Summary
They just tell you it's your time and you have eight minutes.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk said that although the news is talking about a salary increase, the draft bill is, according to him, criminal, and he clearly says no to tax increases and calls for an end to this mess.
Aseesimees Arvo Aller
AI Summary
The speaker offered thanks and then requested that Andrei Korobeinik take the floor on behalf of the Estonian Centre Party Faction.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Korobeinik claims that the draft bill for simplified taxation of business income and the Reform Party's financial policy are pushing the Estonian economy to the brink of crisis. He blames Putin, Trump, and Jüri Ratas, and proposes a bank profit tax, progressive income tax, and a reduction of the public sector as solutions.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller asks for three more minutes.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik accuses Jürgen Ligi and the Reform Party of lying, noting that although the Reform Party and Eesti 200 received approximately 44% of the votes in the elections, their current support stands at only 20–21%. He asserts that they lack the mandate to implement their tax policy, and calls upon the Centre Faction of the Riigikogu to reject the bill and remind them that one must not lie.
Aseesimees Arvo Aller
AI Summary
He thanks the previous speaker and announces that the next speaker is Anti Poolamets, speaking on behalf of the EKRE faction.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets warns that Estonian elections are susceptible to manipulation, and that the legal system and judges are under political control. Furthermore, voters' trust has declined, and only about 13% of voters determine a large part of the country's economy and future.
Aseesimees Arvo Aller
AI Summary
He apologizes to Anti and reminds him that the issue of simplified taxation of business income is currently being discussed.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets thanks you for the reminder and requests extra time.
Aseesimees Arvo Aller
AI Summary
The speaker requests three more minutes of time.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets stated that they lack the mandate for tax hikes, trust has been lost, and they should have no place in the government. He added that Latvia's example shows how defense funding can be achieved through a defense fund and private sector PPP projects without raising taxes, emphasizing that taxes must be transparent, and in the event of an economic downturn, funding must be secured from banks and large corporations, while preventing capital flight.
Aseesimees Arvo Aller
AI Summary
The Vice-Chair gave thanks and invited Riina Sikkut to represent the Social Democratic Party Faction.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut stated that the IMF assessment highlights long-term cost pressure and the necessity of finding a balance between a competitive tax system and enhanced social security. She added that Estonia could consider broad-based tax changes, such as raising the VAT, abolishing the 2% corporate income tax, replacing the progressive income tax structure (the 'tax hump') with a uniform tax-free allowance, and making the security tax permanent (ending its temporary status). She simultaneously stressed that we have the freedom to make our own decisions, and excessive reliance on high tax rates limits tax revenue.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller asks for three more minutes.
Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut said that the IMF recommends budget-neutral tax changes and the introduction of progressive income taxation, and that tax stability is important, but the Social Democrats do not support the bill presented by the government and wish to reject it.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller thanks [the previous speaker] and announces that the Reform Party is next, and they have less than eight minutes. If she is ready, Maris Lauri will open on behalf of the Reform Party faction.
Maris Lauri
Profiling Eesti Reformierakonna fraktsioonAI Summary
Maris Lauri briefly summarized that the debate was predictable and consistent with the respective ideologies: Isamaa supports a progressive income tax and advocates for increasing the tax burden, the Social Democrats and the Centre Party maintain their positions, the old system will return with higher taxes in the name of security, and there are two right-wing parties with a majority in the Riigikogu who stand for a better Estonia.
Aseesimees Arvo Aller
AI Summary
Arvo Aller, speaking as deputy chairman, stated that Urmas Reinsalu’s name had not been mentioned, and a response statement was delivered on behalf of the Isamaa faction within two minutes, during which it was noted that Reinsalu’s time is running out.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu accuses the Reform Party of demagoguery and empty rhetoric, claiming that the planned tax hike—which is supposedly set to take effect next year only to be canceled the following day—will not reduce the tax burden but will instead increase it. This increase includes indirect taxes, corporate income tax, and a personal income tax hike starting in 2026. He argues that this will cause over a billion euros in damage for the public. Furthermore, he calls the move shameful and cowardly because the draft bill was not coordinated with interest groups, and temporary taxes inevitably become permanent.
Aseesimees Arvo Aller
AI Summary
The Deputy Speaker expresses his thanks and announces that Lauri Laats will deliver the response address on behalf of the Centre Party Faction.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats is accusing representatives of the Reform Party of making false statements and engaging in uncivil discourse, while also hinting that they are playing the "Russian card." He emphasizes that the tax hikes (24% income tax and 24% VAT) and the rising cost of living have diminished people's ability to cope financially, and this draft bill will make those tax rates permanent, even though no constructive solution is expected from the minister.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller announced that the SDE faction's reply statement would be postponed until tomorrow because the sitting had concluded.