Taxes
Session: 15th Riigikogu, 5th sitting, information briefing.
Date: 2025-05-21 16:15
Participating Politicians:
Total Speeches: 10
Membership: 15
Agenda Duration: 13m
AI Summaries: 10/10 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
Today's sitting focused primarily on tax reform and its impact on the economy. Aivar Kokk posed a question to the prime minister regarding the further planning of tax increases, discussing the conflict between promises and actual measures, and seeking clarification on why different taxes have arisen or will arise, and how this affects the incomes of people and businesses. The response included specific figures regarding the development of the tax burden for the years 2025–2030, and emphasized that with the abolition of the security tax and changes to income tax and VAT, it is hoped to reduce the tax burden, with separate goals being to improve the financial situation of people and working people. In addition, discussions were held on how changes accompanying the legislation might affect the state budget and what the updated timelines and conditions for promises are.
Decisions Made 1
No decisions were made on the agenda.
Most Active Speaker
The most active speaker was Aivar Kokk (Isamaa), who raised and clarified questions related to taxes and discussed the impact of the tax burden and the fulfillment of promises. His role was in right-wing positions, being a member of the Isamaa faction and participating with the main issue being the reform of the tax structure.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar introduces the six questions for today, which Riigikogu member Aivar Kokk will put to Prime Minister Kristen Michal concerning the topic of taxes.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk asked the Prime Minister why the promised halt on new taxes is not being upheld when new taxes are constantly being introduced and temporary tax changes have become permanent. He also inquired whether further tax increases are expected in the coming years, considering that, according to various calculations, approximately 2 billion euros are collected annually in taxes, while only about 550 million euros are paid back.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal stated that the draft legislation will reduce the tax burden for both individuals and businesses, increase the tax-free minimum to 700 euros, and provide the average wage earner with approximately 1,500 euros of extra money annually. He added that these tax amendments need to be processed because the original plan included a temporary security tax and the taxation of corporate profits, which will be partially abolished following the departure of the Social Democrats, ultimately leaving more money in the hands of people and entrepreneurs.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offers his thanks and invites Aivar Kokk to pose a clarifying question.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk is accusing the government of demagoguery regarding its tax policy, asserting that the promised temporary tax increase is, in reality, permanent. He points to the raising of the 2018 income tax-free allowance, the reduction of support for pensioners and many families, as well as inflation and the economic downturn, and questions whether the future holds even more new taxes or tax increases.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal confirms that the draft legislation currently under deliberation will reduce the tax burden. Security expenditures will increase to at least 5% of GDP, and plans include the abolition of corporate profit tax, the scrapping of the first euro of personal income tax, and raising the tax-exempt minimum to 700 euros. This is expected to increase the annual income of the average wage earner by approximately 1,500 euros. As context, he highlights that Estonia's tax burden is in the lower half of the European Union compared to Finland.
Esimees Lauri Hussar
AI Summary
The Chairman thanks [the previous speaker] and announces that colleague Priit Sibul will ask the follow-up question.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul asked in the Riigikogu whether the establishment of additional strict protection zones in Natura areas constitutes actual nationalization ("neonationalization"). He also questioned why the compensation is only about 160 euros per hectare (less than 200 euros), arguing that it does not cover the actual value of the property and restricts ownership rights.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal stated that fair compensation for nature conservation restrictions is part of the defense policy, and the state will not force landowners to bear the protection burden alone. Instead, compensation measures will be developed, such as Natura area support measures, the utilization of the RMK compensation area, and schemes for acquiring usage rights. Furthermore, according to the 30:70 principle, 70% of the forest is commercial forest. The government does not support imposing a blanket clear-cutting ban in restricted zones, and the decision-making authority remains with the Environmental Board.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar expresses his thanks and announces that he is concluding the consideration of today's sixth item.