Draft law on establishing tax peace (607 SE) – first reading
Session: Fifteenth Riigikogu, Fifth Session, Plenary Session.
Date: 2025-05-21 22:49
Participating Politicians:
Total Speeches: 57
Membership: 15
Agenda Duration: 1h 10m
AI Summaries: 57/57 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The tenth agenda item concerns the debate on the first reading of the draft law 607, initiated by the Isamaa faction, to establish a tax freeze, and related thoughts concerning the faction's draft law 600, also in its first reading. The debate will be led by the bill presenters from the speaker's chair, and they will refer to the current economic situation and the need to finance defense expenditures, which is why the future of a tax freeze and certain tax benefits remains on the agenda. Simultaneously, the plans and justifications of the coalition and the government regarding the continuation or ongoing temporary effect of tax cuts or tax increases will be highlighted, and the long-term impact of the security tax and other taxes on the budget will be discussed.
Decisions Made 1
Bill 607's first reading was postponed. The vote result: 44 in favor, 14 against, 0 abstentions. The bill is removed from consideration.
Most Active Speaker
VTIO4yVEz1k – A member of the Isamaa faction, with a right-wing political orientation. During the agenda, he was the most active speaker, representing arguments for tax reductions and ensuring tax peace, and touching on key issues of the coalition's tax policy and security policy.
Esimees Lauri Hussar
AI Summary
Next up is today’s tenth item on the agenda: the first reading of Draft Act 607 on establishing tax peace, initiated by the Isamaa faction. Aivar Kokk was scheduled to come to the chamber to present the draft, but he is not present, and Helir-Valdor Seeder raised his hand to ask a question regarding the procedures for conducting the sitting.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
He posed a procedural question to the chairperson, asking whether the presentation would be canceled or if they should wait for the speaker to return from the restroom.
Esimees Lauri Hussar
AI Summary
The Presiding Officer announces that a five-minute recess will be taken.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar announces that the recess has ended and proceedings will continue with the first reading of Bill 600, the Act on Establishing Tax Peace, initiated by the Isamaa faction, and asks Riigikogu member Aivar Kokk to serve as the rapporteur.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk, a representative of Isamaa, states that Estonia's tax burden has increased in recent years and the government plans further tax hikes. Therefore, Isamaa wants to repeal the VAT increase scheduled for July 1st, the income tax increase set to take effect on January 1, 2026, and end both the 2% profit tax and the extension of the temporary security tax, so that the economy can grow and people's purchasing power can improve.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi asked whether colleagues' questions were being ignored, and pointed out that even if nothing substantial came of them, it would still be courteous to hear them out.
Aseesimees Toomas Kivimägi
AI Summary
The speech was very long, of course, and I didn't think there was anything left to ask, but they laughed anyway.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
He feels your support and the effect it has on him.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi confirms that this is precisely the case, offers his thanks, and yields the floor to Helir-Valdor Seeder, who then begins his speech.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
He thanks the waiter and emphasizes that the tax hikes are largely the work of the Social Democrats, and calls on the chairman of the Finance Committee to compare whether our neighbors have similarly raised taxes and whether Estonia is the only one in this crisis attempting to experimentally stimulate the economy with tax increases.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk said that for the economy to survive, investments must be attracted and the tax burden must be lowered. He also criticized the Social Democrats' decisions regarding the cancellation of support for large families, the targeting of pensioners, and the choices that caused energy costs to rise, adding that neighboring countries have stimulated the economy by cutting taxes.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Speaker Toomas Kivimägi asks for Urmas Reinsalu to be called upon to speak.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu said that various tax increases are planned for 2026, and he asked whether the Finance Committee had analyzed the logic of this, and whether an additional billion in tax hikes is expected in 2026.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk claims that the increase in VAT and various tax breaks—specifically the corporate profit tax exemption coupled with the income tax incentive for high earners—will drain approximately 700 million euros from the state budget next year, and that taxes are being raised only to cover these incentives, not because of the need for defense expenditures.
Aseesimees Toomas Kivimägi
AI Summary
This is simply a request to invite Mart Maastik to the stage.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mart Maastik thanks the Chair and his colleague and asks what future pensioners stand to gain from the tax increases, referencing the Reform Party's pre-election advertising.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
In the report, Aivar Kokk asserts that pensioners are increasingly being taxed—17 million this year due to the termination of the income tax exemption, and 76 million in 2027. He adds that although a pension increase seems necessary, it will quickly vanish because of the rise in VAT, which affects all products and services.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi offered his thanks and stated that he had no further questions for you.
Aseesimees Toomas Kivimägi
AI Summary
The Honorable Chair of the Finance Committee, Annely Akkermann, introduces the Finance Committee's discussion and the decisions taken.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The committee chaired by Annely Akkermann decided to appoint the current speaker as the rapporteur and place the draft bill on today's agenda. However, the majority of the committee (six members) supported rejecting the bill during its first reading, and the government did not support the draft bill.
Aseesimees Toomas Kivimägi
AI Summary
The speaker thanks you and announces that Helir-Valdor Seeder has a question for you.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
The speaker asks whether the government has clearly justified and provided arguments for why it is not supporting a reduction in the tax burden for individuals and businesses during the current economically challenging situation.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann states that although the coalition intends to replace the security tax with a 24% income tax and 24% VAT, and expand the unified tax-exempt income, she finds it impossible to agree with the proposals in the draft bill.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu points out that 26 new taxes and other burdens will be introduced next year—not counting those already implemented in 2025—and asks the Finance Committee how many of them will take effect in 2026 and what the scale of their consolidated financial and economic impact is.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi called upon Urmas Reinsalu to speak.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann stated that there is a lack of data available when discussing this specific draft bill, and the economic impact of the various fees and charges is currently unknown. Furthermore, gathering this information would be a massive undertaking.
Aseesimees Toomas Kivimägi
AI Summary
Rain Epler is being called up to speak.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler, in his capacity as Chairman of the Finance Committee, recommended compiling a single document that includes the changes to consolidated impact and levies, and distributing it to all members of the Riigikogu to ensure a substantive debate and public awareness.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Officials from the Finance Committee may send you, for example, the spring economic forecast, which includes summaries.
Aseesimees Toomas Kivimägi
AI Summary
The address begins with a request for Varro Vooglaid to come to the stage.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Varro Vooglaid asks the committee whether there was a discussion on this topic, reminds them of the promise that the security tax and the related increases in VAT and income tax are temporary, and emphasizes that if the plan is canceled, they should return to the starting point and be honest.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann stresses that changing the security tax law is nothing to be ashamed of—quite the opposite, it would be shameful not to do it. This is because the additional requirement of 1.6 billion euros (on top of 3% of GDP) and the shifting position of the US president regarding European self-defense necessitate this singular, correct change.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi called Varro Vooglaid to the stage.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vooglaid notes that Prime Minister Kristen Michal was asked in the hall whether the tax hikes were finally over, and although he didn't answer directly, the impression was that he started to dodge the question.
Aseesimees Toomas Kivimägi
AI Summary
Colleagues, this is not a class party—it is now time for Varro Vooglaid's questioning period.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Varro Vooglaid is criticizing the failure to keep promises and is asking whether every new political event will be followed by yet another tax hike.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann stated that she was unable to follow today's information session due to guests, introduced them to the functioning of Estonian democracy, mentioned that Prime Minister Kristen Michal has said that the 'tax festival' is over, does not doubt his words, and added that the international situation has changed with the replacement of the US president, and it is necessary to act accordingly given these changed circumstances.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Evelin Poolamets asked whether the commission had discussed the issue that many pensioners live on the poverty line, and therefore pensions could be exempted from income tax.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi invited Evelin Poolamets to the podium to speak.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann stated that the tax-free income for pensioners is 774 euros per month, and this amount is already exempt from income tax. Furthermore, yesterday a decision was adopted to abandon the 2% security tax, which would have been calculated on that sum, and this truly alleviates the situation of pensioners.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats claims that the Reform Party's boasting about a 36% tax burden is misleading, because the actual burden of consumption taxes is 42%, which disproportionately affects people earning low and average wages. He also highlights the recommendations of the IMF, the European Commission, and the OECD for making the tax system sustainable, while simultaneously emphasizing that the raising of the Value Added Tax (VAT) will continue.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi invited Lauri Laats to speak.
Aseesimees Toomas Kivimägi
AI Summary
The Vice-Chair thanks the esteemed colleague.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
The question of consumption taxes – is their share of the national budget too high?
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Estonian tax system is competitive, and the overall tax burden is low within the European Union, even though the VAT rate is high. While low-income individuals pay little income tax, they end up spending a significant portion of their earnings on essential goods through VAT.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi opened the discussions, giving the floor to Urmas Reinsalu on behalf of the Isamaa faction and requesting an additional eight minutes.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu stated that in the difficult financial situation, the tax burden must be reduced, and the tax policy increases implemented by the government and the Reform Party must be halted. He proposed, on behalf of Isamaa, that the planned increases to VAT and income tax be scrapped, and that the issue of the security tax be addressed first. He simultaneously warned that by 2026, additional tax burdens could amount to billions of euros.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi thanked the audience.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu confirms that there is no alternative, and the alternative is Isamaa.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi explained that he only used the word "class party" to refer to the way his colleagues talked over and prevented Varro Vooglaid from asking his question.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats claims that the Reform Party's tax policy—the increases in VAT and income tax, along with the plan to abolish the tax hump—is a smokescreen that primarily burdens low and middle-income individuals, creates a hole in the budget, and endangers investments necessary for the development of healthcare, security, and the economy.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi, speaking on behalf of the Isamaa faction, called upon Urmas Reinsalu to deliver a rebuttal, emphasizing that the topic is so broad that it likely touches upon everyone’s viewpoints.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu stated that claims about lowering taxes are false, because the government's draft bill actually increases the overall tax burden by approximately a quarter of a billion euros (181 million euros in personal income tax, 75 million euros in corporate income tax, and 0.9 million euros in business account tax). He added that the Isamaa proposal, in contrast, actually constitutes a tax reduction.
Aseesimees Toomas Kivimägi
AI Summary
I will now close the debate, and the proposal by the lead committee to reject Bill 607 at the first reading will proceed to a vote.
Aseesimees Toomas Kivimägi
AI Summary
Forty-four members of the Riigikogu voted in favor, 14 against, and 0 abstained. The proposal received support, but Bill 607 has been rejected and is therefore dropped from the proceedings.