Continuation of the first reading of the draft law amending the Income Tax Act for Entrepreneurs, the Security Tax Act, and the Income Tax Act (645 SE)
Session: Fifteenth Riigikogu, Fifth Session, Plenary Session.
Date: 2025-05-21 17:18
Participating Politicians:
Total Speeches: 16
Membership: 15
Agenda Duration: 11m
AI Summaries: 16/16 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The session continued from the previous day's meeting, reviewing the draft law 645 – the draft law on the simplified taxation of entrepreneurial income, and related income tax and security tax drafts, initiated by the Republic's Government, which had been left unfinished. The focus of the discussion was on the redistribution of the tax burden and its impact on different income levels, including the necessary funding to ensure defense expenditures and security capability. The Social Democratic Party faction declared their firm support for a progressive income tax in order to avoid unpleasant surprises and maintain a lively discussion, emphasizing the program's promise to make the tax system fairer while preventing the tax burden from being carried on the shoulders of low-wage earners.
In the second part, the agenda included a discussion regarding deliberations in committees and adherence to the rules of procedure – whether the draft law's explanatory note and the opinions of the included institutions should be presented, and whether it is possible to move forward with the first reading with a rushed procedure. Possible amendment proposals (the joint proposal of the Centre Party and SDE factions to reject the first reading) were also under discussion. Ultimately, it was agreed that the draft law, which is not acceptable for the first reading, would be put to a vote, and a corresponding procedural decision was prepared for it; the session ended with the clarification that the first reading was completed and the deadline for submitting amendment proposals is set for June 3rd at 5:15 PM.
Decisions Made 1
The first reading was completed, and two factions submitted a motion to reject the proposal at first reading; the vote showed that the proposal did not receive approval (36 in favor vs. 47 against). The deadline for submitting amendments was also set for June 3rd at 5:15 PM.
Most Active Speaker
The most active speaker was Urmas Reinsalu (pid nHm--Ta7jVU), a member of the Isamaa faction, whom one could describe as a representative of the right-wing position. He led the discussion and presented thorough viewpoints regarding the correctness of procedure and adherence to rules of technical norms, repeatedly drawing attention to procedural questions and demonstrating a strong willingness to ensure the procedural quality of the bill before moving forward.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi announced that they would continue the debate on Draft Bill 645, which was left pending during yesterday's session. The bill addresses the simplified taxation of business income, the security tax, and amendments to the Income Tax Act. Following this, Riina Sikkut will deliver a response speech.

Riina Sikkut
Profiling Sotsiaaldemokraatliku Erakonna fraktsioonAI Summary
Riina Sikkut confirmed on behalf of the Social Democrats that a progressive income tax will be implemented in Estonia and the tax burden must be fairly distributed to finance the growth of defense spending, as well as education, healthcare, and pensions. Furthermore, she submitted a motion yesterday to reject the government's draft bill.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi concluded the negotiations and announced that the responsible committee intends to finish the first reading of draft bill 645. However, two proposals received—one from the Centre Party and the other from the SDE parliamentary group—are identical in substance, and the desire is to reject the bill during the first reading.

Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu asserted that the handling of the draft legislation conflicts with Section 92, Subsection 1 of the Rules of Procedure Act, and consequently, a vote on its rejection should not be held during the first reading. He requested the Board to clarify whether they had taken up the matter concerning Section 92, Subsection 1 for consideration, and if not, what the reasons were.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi stated that the board made the decision unanimously and that it complies with the Riigikogu Rules of Procedure and Internal Rules Act. He added that technical specifications are not grounds for rejecting the draft bill, and that this issue should have been raised when the agenda was confirmed, concluding that his colleague is hopelessly late in bringing it up now.

Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu accuses the government, stating that the draft bill failed to comply with the Riigikogu’s legislative drafting rules or the required coordination process. He argues that the government omitted the positions of institutions and public debate, made temporary tax increases permanent, and thereby broke off dialogue with business organizations.
Aseesimees Toomas Kivimägi
AI Summary
He apologizes to Mr. Reinsalu and explains that audibility is a problem—although he can hear perfectly fine himself, our assistants are complaining that they cannot hear him.

Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Only the fragmented sentence, "Should I repeat the whole…," is visible in the current text, making it impossible to provide a substantive summary.
Aseesimees Toomas Kivimägi
AI Summary
He tells them to continue from that point and speak a little louder.

Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu asks what your proposal is if no one listens.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi suggests moving a little closer to the microphone.

Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu simply said that it is understandable.
Aseesimees Toomas Kivimägi
AI Summary
You have the right and the opportunity to start over, because several colleagues did not hear.

Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu claims that the government bill lacks both an explanatory memorandum and the required coordination round, and that procedural rules prohibit the parliament from taking it into proceedings. Consequently, the board must form a position regarding the formal quality of the bill and should not advance it to the first reading or a vote.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi confirmed that both the management board and the Riigikogu have formulated their positions and initiated proceedings. He emphasized that the debate has occurred and will continue during subsequent readings, and he called for a vote on the proposal put forward by the Estonian Centre Party and Social Democratic Party factions to reject the first reading of draft bill 645.
Aseesimees Toomas Kivimägi
AI Summary
At the first reading, the draft bill received 645 36 votes in favor, 47 against, and there were no abstentions; consequently, the bill failed to gain support. The deadline for submitting amendments is June 3rd at 5:15 PM, and the first item on the agenda has been concluded.