The coping of Estonian people
Session: 15th Riigikogu, 5th sitting, press briefing
Date: 2025-06-04 16:08
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
The discussion of the sixth question focused on the ability of Estonian people to cope in a crisis situation. Anti Allas posed a specific question to the Prime Minister, Kristen Michal, regarding the impact of the tax structure and why the coalition doesn't see fit to implement measures aimed at the coping ability of all people: rethinking the tax system and the contribution of the wealthier could help alleviate the situation where prices have risen and people's ability to cope is more strained. In addition, coalition agreements and future changes in tax management were discussed, including progressive income tax, a tax-free minimum, and potential simplifications for businesses.
The second part of the discussion focused on the Prime Minister's responses: how and in what ways is it planned to ensure economic growth and people's ability to cope through tax system reforms, a balanced state budget, and specifically worded measures such as car tax relief for families and incentives for disabled people to use vehicles. The discussions also brought out the context of financial indicators – the deficit in stimulating the economy and tax burden forecasts for the years 2024–2029.
Decisions Made 1
Decisions were not made. The discussion continues, and coalition partners and the opposition are analyzing proposals and existing solutions regarding the state budget and tax system.
Most Active Speaker
The most active speaker was Prime Minister Kaja Kallas (right-wing political position). She led the discussion, provided explanations regarding the impact of tax system reforms, and highlighted the coalition’s plans concerning changes in the tax burden and economic growth, noting that the state must ensure people’s ability to cope during crisis periods through financial and social policy measures.
Esimees Lauri Hussar
AI Summary
Member of the Riigikogu Anti Allas is submitting six questions to Prime Minister Kristen Michal concerning the livelihood of the Estonian people.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas emphasizes that the minimum subsistence level for all people is part of national defense, notes the coalition agreement lacks a clear plan to leave no one behind, and criticizes the tax system and tax hikes as symptomatic of a bankrupt economy. At the same time, he calls for increasing the tax contribution from higher salaries through a fairer progressive income tax in order to support everyone.
Peaminister Kristen Michal
AI Summary
The report confirms the increase in the tax-free minimum and the abolition of corporate income tax, which will result in approximately 700–1500 euros of additional annual income. It explains that the Estonian state is not bankrupt and that the deficit stimulates the economy, and it indicates that abolishing the income tax encourages investment in higher value-added production.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks [the previous speaker/group] and asks Anti Allas to pose a clarifying question.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas stated that the tax system established by the Reform Party over the years proves ineffective during a crisis. We must adopt a new approach where traditional methods are obsolete, and the wealthiest are prepared to contribute slightly more assistance.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal stated that he is ready to hear all arguments, but the vision involves abolishing the progressive income tax in 2026 and raising the tax-free threshold to 700 euros. This will increase the disposable income of the middle class (teachers, police officers, and rescuers), ensure the tax system remains competitive, and cancel the proposals for additional taxation via a profit tax. Furthermore, an income tax exemption starting from the first euro will be implemented for low-income earners and pensioners. Additionally, the car tax will be eased for families, and work will commence on harmonizing the taxation of M and N category commercial vehicles. The tax burden is projected to fall from 36.8% this year to 35.6% next year, and further to 35.1% in 2029.
Esimees Lauri Hussar
AI Summary
The Chairman thanks [the speaker] and announces that his colleague, Madis Kallas, will ask a supplementary question.
Madis Kallas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Madis Kallas clarifies that Anti Allas’s comment does not align with the interpretation regarding the tax hump and progressive income tax. He highlights people’s feedback concerning their ability to cope and asks what specific ideas for improving people's ability to make ends meet were planned for inclusion in the coalition agreement but ultimately didn't make the cut, and why.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal confirms that although the coalition agreement contains many aspirations, the government has made numerous decisions in a short period, reduced bureaucracy with the assistance of top entrepreneurs, reformed the corporate income tax system to incentivize investment and growth, and offered car tax relief to families and people with disabilities. He emphasizes that the primary measure of success in the future will be the defense of the Estonian state and ensuring a peaceful life for subsequent generations.
Esimees Lauri Hussar
AI Summary
He/She thanks everyone and announces that they are concluding the consideration of today's sixth question.