Draft Law on Annulment of Excise Tax Increases on Energy Carriers (627 SE) - First Reading
Session: 15th Riigikogu, 5th session, plenary session
Date: 2025-06-04 23:07
Participating Politicians:
Total Speeches: 51
Membership: 15
Agenda Duration: 55m
AI Summaries: 51/51 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The focus of today's agenda item was bill 627, initiated by the Isamaa faction, which sought to declare energy carrier excise tax increases invalid. The first reading took place, and the presentation began with the words of Member of the Riigikogu Aivar Kok. The bill’s purpose is to halt previous and planned excise tax increases and to provide room for the economy to grow, not with the direct aim of generating additional revenue. Attention was also drawn to the widespread impact of excise taxes on the prices paid by end consumers – the price levels of fuel, electricity, and food – and the effect this has on families and businesses.
In the second part, there was discussion and an argument between the opposition and the coalition regarding the broader impacts of tax increases, including the context of inflation and the cost of living. Ultimately, the decision was reached that the leadership committee recommends rejecting the bill on its first reading and preparing for a vote. It was also noted that the vote result would be influenced by numerous opinions and that the bill’s failure to pass would terminate its consideration in its current form.
Decisions Made 1
The parliamentary committee's proposal was to reject bill 627 at the first reading. The vote result was: 42 in favor, 9 against, with no abstentions. This collegial decision removes the bill from the legislative process.
Most Active Speaker
Aivar Kokk (Isamaa faction) – the most active speaker in this discussion. He represented the Isamaa position and delivered speeches as a factional presentation on the relationship between tax policy and excise duties on energy carriers. His track record shows a profile of right-wing politics, and he has served as the faction's representative in discussions related to this topic.
Esimees Lauri Hussar
AI Summary
Today's ninth agenda item is Bill 627, initiated by the Isamaa faction, concerning the annulment of excise duty increases on energy carriers, which is the first reading. Riigikogu member Aivar Kokk is invited to give the presentation.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk, a representative of the Isamaa party, claims that the excise duty hikes decided in November 2021 and December 2024, along with the tax increases that took effect starting May 1st, will increase costs for final consumers and harm the economy. He calls on the coalition to abandon these increases and declare them void so that the Estonian economy can grow again.
Esimees Lauri Hussar
AI Summary
The Chairman thanked the presenter, noted that there were questions, and invited Riina Solman to take the floor.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman compares the coalition agreement’s promises of tax cuts and the abolition of tax concessions with the Prime Minister’s recent speech on tax hikes, and questions whether his remarks were an information operation, a deception, or a distortion of the truth.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
In short, Aivar Kokk claims that the coalition's tax policy takes about 2 billion euros annually from the pockets of people and businesses, disproportionately affecting those with low incomes, large families, and pensioners, while simultaneously making temporary tax hikes permanent and granting monthly income tax benefits to coalition politicians.
Esimees Lauri Hussar
AI Summary
This is a very brief address, which is simply a request aimed at the person named Anti Allas.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas thanks the presiding officer and the rapporteur, and then refers to the Social Democrats, saying, "Let's talk about how things really were."
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
This utterance consists only of the word "Noh!", which indicates a pause or reflection and does not convey any specific message.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas argues that the increase in land tax is a local municipality's decision, not an obligation, and points out that several local governments run by the Isamaa party have actively implemented these hikes, suggesting that less hypocrisy is required.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk accuses the Social Democrats and the minister of adding a clause to the law stipulating that, starting in 2026, land tax must increase by at least 10% and could reach up to 100%, regardless of the local municipality or council decision, thereby violating previous consensus. He also emphasizes that the 10% requirement would remain in effect and the tax exemption for land under one's home would be up to 1,000 euros for everyone.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar called Peeter Ernits to speak.
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The speech poses the anxious question of what will happen if this bill becomes law—will the state be thrown off balance and the ship of state lose its equilibrium.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
For the Estonian economy to continue growing, lowering taxes—not raising them—is crucial, because the 2020 reduction in excise duties stimulated economic growth. Meanwhile, rising energy costs, speculation on CO2 quotas, and continuous tax increases are eroding the profits of both businesses and consumers.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The presentation focuses on the draft bill's impact on inflation and its potential to keep price increases lower, highlighting that the proponents of the excise duty hike claim that even if the duties are lowered, merchants and fuel retailers will maintain high price levels.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invited Vladimir Arhipov to speak.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov's speech focuses on inflation.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk claims that inflation is primarily driven by tax hikes and increasing production costs stemming from rising energy prices, especially gas, and emphasizes that taxes must not be raised further because people's lives are becoming increasingly difficult.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Helir-Valdor Seeder to speak.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder claims that the impact of the current bill is inflation-reducing, not inflation-increasing.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk noted that the draft bill exists, but he added that people are asking what would happen if that law isn't passed.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder asked about the impact of the draft bill.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder posed a question regarding the land tax, expressed astonishment at the level of knowledge concerning tax policy, and inquired whether the land tax hike had not, in fact, been decided upon twice—initially for the period designated for the tax increase.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk uttered only the word 'Just!' in his speech.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
He pointed out that the land tax burden and the price of land could change in the future, and the Riigikogu decided to sharply raise them by up to 100%. This makes the lives of investors and entrepreneurs more expensive and less flexible.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk stated that although the previous council had agreed to a 10% increase, and the council was given the choice of 0–10% or up to 100%, the law actually mandates the 10% increase while simultaneously allowing up to 100%. This is the catch, and it means the council cannot make its own decisions today—it is regrettable that the social democrats have considered the state to be wiser than the council.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar calls upon Evelin Poolamets.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The Estonian economy fell by 0.3% in the first quarter, and the speaker asked what Estonia’s competitiveness would be if the bill did not find support, and whether there was any hope that the economy would ever grow.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk states that both the previous and the current coalition have done everything to drive the Estonian economy downhill due to the high tax burden. He calls for strengthening entrepreneurship and investments (citing the Finland-Estonia tunnel as an example) in order to preserve jobs, improve wages and pensions, and prevent widespread impoverishment.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar calls upon Anti Allast.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas thanks the presiding officer and the rapporteur, praises his colleague Aivar, and says that the speech was eloquent, but something was left unsaid.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas accuses the Isamaa party of letting the tax structure collapse over the past few years, arguing that investments are flowing out tax-free, which means there is no money left for teachers' salaries.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas asks whether Isamaa is saying one thing and doing another, citing the fact that land tax has been raised in several municipalities led by the party.
Esimees Lauri Hussar
AI Summary
The chairman invited the audience to ask their question.
Esimees Lauri Hussar
AI Summary
He expresses thanks.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas asked the question: Is this over 10%?
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Isamaa representative Aivar Kokk claims that Isamaa has kept the economy in good shape and implemented significant reforms—including free higher education, support for large families, the 2020 teacher salary increase totaling 120 million euros, excise duty cuts, and pension pillar reforms—and accuses the SDE and Reform Party government of the insane policies of recent years.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar suggests that we now stick to the specific bill.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
He/She emphasizes how strongly things are interconnected.
Esimees Lauri Hussar
AI Summary
Chairman Hussar stated that this is currently constrained, but it can be addressed during the negotiations within five plus three minutes, and the next questioner is Riina Solman.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman emphasized the repeal of excise duty hikes to curb inflation and return to people what had already been taken away through the tax increases. She simultaneously questioned where the money would be sourced, pointing to the Reform Party's plan to abolish the 'tax hump' as a possible funding source.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
MP Aivar Kokk emphasizes that the funding for the state budget and defense expenditures must come from entrepreneurship, not from increasing taxes. Furthermore, he argues that the income tax exemption for high earners must be abolished to help low-income individuals and promote economic growth through productive enterprise and lower taxation.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Evelin Poolamets to come forward.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The rapporteur recalled the 2018 tax policy, when taxes flowed to Latvia, and noted that while the Estonian economy is declining, the economies of Latvia and Lithuania are growing. They then asked for advice on how Estonia can now catch up with Latvia and prevent taxes from being channeled to Latvia.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk said that our neighbors—Latvia, Lithuania, Finland, and Sweden—have learned from the steps we took in 2020, reducing taxes and supporting businesses. However, in Estonia, the banking sector is the only one subject to advance income tax, which has been raised from 14% to 18% to keep domestic banks viable, even though this increases the tax burden on entrepreneurs.
Esimees Lauri Hussar
AI Summary
The Chairman thanks the rapporteur, announces that we will now hear what was discussed in the Riigikogu Finance Committee, and invites Diana Ingerainen, a member of the Finance Committee, to speak.
Diana Ingerainen
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The Finance Committee discussed the introduced draft bill, and three decisions were made: the inclusion of the draft bill on the plenary session agenda for June 4th was approved by consensus; Diana Ingerainen was unanimously appointed as the representative of the leading committee; and the proposal to reject the draft bill was not adopted by consensus (5 in favor, 2 against).
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar declares the debate closed and asks the Riigikogu to vote on the leading committee’s proposal to reject Draft Act 627 at the first reading.
Esimees Lauri Hussar
AI Summary
42 members of the Riigikogu voted in favor of the proposal, 9 were against, and there were no abstentions. Consequently, Bill 627 has been rejected and is dropped from the proceedings.