Draft law amending the Income Tax Act (597 SE) - First Reading
Session: Fifteenth Riigikogu, Fifth Session, Plenary Session.
Date: 2025-05-21 23:59
Participating Politicians:
Total Speeches: 36
Membership: 15
Agenda Duration: 44m
AI Summaries: 36/36 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
Agenda item number 11 addressed the draft law amending the income tax act 597 for its first reading, initiated by the Estonian Conservative People’s Party faction. The draft’s purpose was to reduce the income tax rate to 20%, while government plans foresaw an increase in income tax to 24% from next year. The discussion brought out both the logic of the tax system and broader economic impacts: an increase in net income for wage earners, motivation for employees, and at the same time, the impact of the shadow economy and inflation on the state budget. Some emphasized that tax cuts could stimulate the economy and put more money in people's hands, while others warned of the loss of tax revenue and a weakening of budgetary and consumption capacity, which could further destabilize the business and legislative environment. As a final decision regarding the draft, it was decided to reject the draft in the first reading and to terminate the procedure under certain conditions.
Decisions Made 1
Bill 597 rejected on the first reading; the bill is dropped from the process; the vote result: 39 in favor, 10 against, 0 abstentions.
Most Active Speaker
The most active speaker was Member of Parliament Rene Kok (pid=eoQySqbpowY). He represented the core of the debate, and his participation and lengthy text input brought the discussion to the center; his position aligns with the right/right-wing spectrum (right).
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi called for the debate to continue outside this chamber, informed the assembly about agenda item No. 11—the first reading of Draft Bill 597, initiated by the EKRE faction, concerning amendments to the Income Tax Act—and invited Rene Kok to the rostrum.
AI Summary
Rene Kokk put forward a proposal to lower the income tax rate from 22% to 20%, arguing that this would increase people's net income, provide families with more money for raising children, education, and buying a home, stimulate the economy, and reduce the shadow economy, thereby demonstrating the state's caring attitude toward its citizens.
Aseesimees Toomas Kivimägi
AI Summary
The speech expresses thanks, invites questions, and addresses Martin Helme.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme said he would vote in favor of the bill, referring to the claim made in the chamber yesterday about Europe’s best money laundering minister, who allegedly stated that money laundering went well in Estonia last time, and asked what the difference was between his tax reduction bill and ours.
AI Summary
Rene Kokk accuses the government of compiling a massive tax package, which they are presenting as tax cuts, but the real plan involves implementing tax hikes and making some tax schemes permanent. Furthermore, the constant rotation of ministers makes monitoring and debating this in the Riigikogu extremely complicated.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi asked Andres Sutt an unexpected question.
AI Summary
Rene Kokk criticized the government, stating that the draft bill for withdrawing from the Ottawa Convention was sensible and should have been resolved quickly given the security situation. However, he noted that analyses and assessments of the impact of tax changes have not been conducted, and good proposals put forth by the coalition are not being supported.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi calls upon Evelin Poolamets to speak.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Evelin Poolamets questions whether it is fair that an individual who paid taxes throughout a long working career must still shoulder the tax burden in retirement, while the pension, calculated against inflation, mostly fails to provide a living wage, despite the Reform Party having promised not to raise pensions, and income tax being withheld from those pensions.
AI Summary
Rene Kokk criticizes the government and the Reform Party's policies, stating that they do not understand the average Estonian or pensioners, that the requirement for a biocomponent in aviation fuel has minimal impact, and that election advertisements related to pensioners are grotesque and unethical.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi invited Martin Helme to speak.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme claims that tax receipts only appear to be in order due to two taxes—corporate income tax and personal income tax revenue—but in reality, the government is making people poorer by raising taxes, and this collection does not justify increasing those rates.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi thanks.
AI Summary
Rene Kokk emphasizes that tax increases will boost the shadow economy, accelerate the labor drain, and deepen the demographic crisis. He also questions the reliability of the government’s data and claims that tax revenues will not increase, arguing that the true effects will only become apparent this autumn and next year.
Aseesimees Toomas Kivimägi
AI Summary
Varro Vooglaid is asked to speak during the address.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vooglaid claims that tax increases are not the only way to secure the country, and Estonia could look at Latvia's example to see how priorities and funding are set without tax increases.
AI Summary
Rene Kokk claims that tax policy is strangling the economy, entrepreneurs are moving to more favorable tax environments, unemployment is rising, and the crisis is deepening. Therefore, quick and effective solutions are necessary, because raising taxes only postpones the problem.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi invited Helle-Moonika Helme to the stage.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme is accusing the government of constantly raising taxes and adhering to external advice, specifically the recommendations of the IMF. She highlights the creation of the car tax, the property tax, and a nationwide asset register, and asks whom these decisions truly benefit—the people or someone else—and whether the country is being governed at all.
AI Summary
Rene Kokk says that the problem is not competence, but arrogance and a sense of impunity, and calls for breaking the culture of timidity and standing firmly for the interests of the Estonian people and economy, promoting reasonable proposals such as a wealth tax and a biocomponent in aviation fuels.
Aseesimees Toomas Kivimägi
AI Summary
Evelin Poolamets concludes the Q&A session.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Evelin Poolamets stresses that during an economic downturn—when businesses are struggling, energy prices are high, and the workforce exceeds 64,000 people—income tax must not be raised. Doing so, she argues, could destroy the public's sense of fairness, encouraging tax avoidance and the proliferation of under-the-table payments.
AI Summary
Rene Kokk states that the line has already been crossed, and people are leaving Estonia because the constant changing of laws and the resulting legal uncertainty make life unstable. People are craving stability and a decent pension.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi called Helle-Moonika Helme to speak.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme accuses Kaja Kallas of lying about taxes and claims that the taxes had to be raised solely for the sake of her own power, adding that the Estonian people are suffering and that her career in Europe will not end well if she continues trying to grovel there.
AI Summary
Rene Kokk points out that people are willing to pay taxes if they are clearly shown where the money goes and why, but the state is unable to plan its budget properly, resulting in millions of euros being shifted from one budget to another every year. He emphasizes that the state is actually us—the people and businesses—not just individual officials or ministries.
Aseesimees Toomas Kivimägi
AI Summary
Thanking the rapporteur, the Deputy Chairman announced that there were no further questions and asked Rain Epler to pose one question to the presiding officer of the session.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler raises the inconsistencies between the Reform Party's actions and promises, along with accusations of lying, and asks whether the presiding officer is capable of remaining impartial regardless of their party affiliation.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanked his colleagues, noting that when he is chairing, he sets aside his status as a member of the Reform Party. He added that we now have the opportunity to hear the report from the lead committee, and he mentioned that he has a few questions ready for Annely Akkermann.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann stated that the budget impact of the draft bill would be approximately 200 million euros in deficit, and this would be compensated by a consumption tax. However, even if all the additional money went into consumption, only about 24% would be collected through VAT. The Finance Committee decided to reject the draft bill, and the speaker here was appointed as the representative of the lead committee. She emphasized the deterioration of the situation for pensioners during the Reform Party's tenure, refuted Siim Pohlak's false claim, and recalled that the tax burden on pensioners increased during Isamaa's time. But since the Reform Party came to power, old-age pensions have been made income tax-exempt, and pensioners are receiving more money as a result.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanked everyone, stated that there were no questions, opened the debate, and invited Arvo Aller to take the floor on behalf of the EKRE faction.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller states that the income tax reduction bill is designed for the Estonian people, leaving working individuals with more money to put back into the economy. Simultaneously, he accuses the current government of hiking taxes and overburdening the populace, linking these actions to Putin's propaganda.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi is asking for three more minutes.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller brings up the example of Latvia, where the share of national defense spending is growing to 5%, taxes are not rising, and people are managing fine. He criticizes former coalition partners for raising taxes and asserts that this bill will improve the lives of the Estonian people and should therefore be supported.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi concludes the debate and immediately puts to a vote the steering committee's proposal to reject Bill 597 during its first reading.
Aseesimees Toomas Kivimägi
AI Summary
The Riigikogu supported the proposal with 39 votes, 10 were against, and there were 0 abstentions; Bill 597 has been rejected and is dropped from the legislative procedure.