Consequences of Government Policy
Session: 15th Riigikogu, 5th session, information briefing
Date: 2025-06-18 15:27
Participating Politicians:
Total Speeches: 10
Membership: 15
Agenda Duration: 12m
AI Summaries: 10/10 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The third agenda item concerned the assessment of the government's policy consequences, focusing on the taxation of climate and transport policy, and particularly car tax. Member of the Riigikogu, Urmas Reinsalu, posed a detailed and critical question regarding the design of this taxation and its impact on people, referring to the demands made at the beginning of 2023 concerning the fulfillment of climate objectives and the resulting increase in revenues and burdens. He asked whether car tax is actually a failed experiment and whether its continuation is justified, and requested clarification on how planned changes might affect people’s payments. The discussion touched on public understanding and media coverage of alternatives, and the question of how to interpret developments regarding different tax liabilities and the emergence of increased bills. Deliberately, efforts were made to clarify why and how a tax needs to change and whether larger renovations are needed or if it should be abandoned. In the second paragraph, the discussion largely shifted towards concrete solutions and future steps, including plans for adapting the tax. Particularly important was the Prime Minister’s response, which summarized the intentions of the coalition and the Ministry of Finance, and outlined the next steps for the developed plan.
Decisions Made 2
The government and the Ministry of Finance are preparing a concept for implementing car tax reliefs (including lowering tax rates for families with children and people with disabilities, and reducing the burden on M and N category vehicles), and the initial draft will be ready by September; discussion in the Riigikogu (Parliament) will take place after the initial draft has been prepared.
Public fire-directed distribution: Based on annual tax forecasts, the approximate revenue is around 99 million euros, of which a third goes to relief measures intended for families with children and people with disabilities, and the remainder goes to funding roads; these plans are confirmed within the coalition and the government.
Most Active Speaker
The most active speaker in the Riigikogu: Urmas Reinsalu (Isamaa). Isamaa is a right-wing party; he posed several clarifying questions and held a critical and attention-grabbing discussion, which remained focused on one topic – the perception of automotive tax policy and its impact, and the consequences of climate policy.
Esimees Lauri Hussar
AI Summary
MP Urmas Reinsalu is submitting a question to Prime Minister Kristen Michal concerning the consequences of the government's policy.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu labels the car tax a failed experiment created in the name of climate goals and calls for its repeal. He also asks the Prime Minister how the car tax amount, which was registered as of January 1st, managed to increase by June 15th, and why some individuals’ tax liability has grown compared to January.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal announced that the burden of the car tax on families with children and people with disabilities will be reduced, and the tax rates for M and N category vehicles will be lowered. The government and the Ministry of Finance will present the concept for this tomorrow, and a draft bill will be ready for discussion by September.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks [the speaker] and asks Urmas Reinsalu to pose a clarifying question.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu is criticizing the Prime Minister for abandoning the promised climate car tax measures and is demanding the car tax be abolished entirely. He claims that this state-centered approach only generates bureaucracy while the public faces ever-increasing costs.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that the coalition has agreed that the annual car tax will be reduced for families with children and people with disabilities, and that M and N category vehicles will also receive this lower rate; the projected revenue is about 99 million, of which approximately 25–30 million will go towards relief measures, and the remainder will be used for road financing.
Esimees Lauri Hussar
AI Summary
Colleague Mart Maastik asks a follow-up question.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mart Maastik criticized the state's tax policy and the subsidies for offshore wind farms, recalled the poor decisions made under the leadership of the Social Democrats (Sotsid), and asked directly whether their party is truly responsible or not.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal announced that the tax burden will decrease between 2025 and 2029 (36.8% in 2025, 35.6% in 2026, and approximately 35% in 2029). This change will provide the economy and the public with approximately 500 million euros more money next year. Furthermore, alongside the abolition of the progressive income tax, the non-taxable minimum income will increase to 700 euros starting in 2026. Simultaneously, defense spending will rise to 5.4% of GDP and will be financed by a loan, meaning that people will retain more money during the current period.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks and concludes the debate on the third issue today.