Interpellation Regarding the Overall Impact of the Tax Package (No. 443)
Session: 15th Riigikogu, 3rd sitting, plenary session.
Date: 2024-01-08 19:59
Participating Politicians:
Total Speeches: 13
Membership: 15
Agenda Duration: 11m
AI Summaries: 13/13 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
This agenda item concerned Interpellation No. 443 regarding the comprehensive effects of the tax package, submitted by Riigikogu members Vadim Belobrovtsev and Tanel Kiik on May 13, 2023, which was answered by Minister of Education and Research Kristina Kallas. The representative of the interpellators, Vadim Belobrovtsev (Centre Party), criticized the government’s haste in pushing through the tax amendments, referring to the already effective VAT increase (22%) and the upcoming income tax reform. Belobrovtsev emphasized that these changes are detrimental to the Estonian economy, reduce consumption, and harm entrepreneurship, and he sought to know the specific impacts of the tax package on the education and research sector and what mitigation measures the Minister plans.
In her response, Minister Kristina Kallas explained that the VAT increase does not directly affect the expenditures of state institutions (including state schools and vocational schools), as their budgets are VAT-exempt. However, she acknowledged that the impact is significant for local governments (LGUs) as school maintainers, although the ministry had not separately calculated exact figures regarding the procurement of goods and services for the education sector. Regarding the income tax reform (entering into force in 2025), the Minister confirmed that employees in the education sector (teachers and kindergarten teachers) will benefit from the tax reduction component, thereby increasing their net income. The subsequent discussion focused on the teachers' salary issue and the role of LGUs, where the Minister stressed the need for tripartite negotiations (ministry, LGUs, trade unions) to maintain the autonomy of local governments as school maintainers.
Decisions Made 1
During the interpellation process, no decisions or political positions were adopted. This constituted merely an informative response to the questions posed by the members of the Riigikogu (Parliament).
Most Active Speaker
The most active speaker was Vadim Belobrovtsev, the representative of those submitting the interpellation, who presented the substance of the inquiry and later posed two clarifying questions. Belobrovtsev represents the opposition (Centre Party), and his position was critical of the government’s tax package, emphasizing its negative impact on the economy and the education sector. His primary objective was to compel the minister to acknowledge the detrimental consequences of the tax package for the education and research sector.
Aseesimees Jüri Ratas
AI Summary
The Riigikogu is moving on to the next interpellation, which concerns the overall effects of the tax package presented on May 13, 2023 (No. 443). This interpellation was submitted by Vadim Belobrovtsev and Tanel Kiik, and it will be answered by the Minister of Education and Research, Kristina Kallas. The questioner, Belobrovtsev, requests that the interpellation be introduced to the public.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev warns of the detrimental effect of the rushed VAT and income tax changes on the Estonian economy, and asks the Minister of Education about the tax package's impact on education and science, the competitiveness of the tourism sector, what mitigation and consultation measures he is planning, and whom he consulted with prior to implementing the widespread tax changes.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas asks the Minister of Education and Research, Kristina Kallas, to come to the Riigikogu podium to answer the interpellation.
Haridus- ja teadusminister Kristina Kallas
AI Summary
The Minister of Education and Research, Kristina Kallas, stated briefly that the VAT increase would not significantly raise the costs for state schools and vocational schools, as these expenses are accounted for in the budget without VAT. However, the impact on local governments is considerable, and the income tax reduction that comes into force next year will result in higher net income for teachers.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas thanks the minister and notes that there are also questions, before inviting Anastassia Kovalenko-Kõlvart to speak.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker emphasized that funding education and raising teachers' salaries is the responsibility of the state. They criticized the assertion that local municipalities are to blame and called on the state and local governments to sit down at a common table so that the state finds the necessary additional resources, rather than shifting the responsibility onto the municipalities.
Haridus- ja teadusminister Kristina Kallas
AI Summary
Minister of Education and Research Kristina Kallas said that teachers' salaries and workload are decisions for the local municipalities that operate the schools, and that solutions require tripartite negotiations (the ministry, local governments, and teachers' trade unions) to preserve municipal autonomy and prevent state intervention in wage determination.
Aseesimees Jüri Ratas
AI Summary
Deputy Chairman Jüri Ratas invites Vadim Belobrovtsev to speak.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev notes that due to the income tax reform, the tax will likely increase by two percentage points next year (similarly about 10%), which should result in an increase in teachers' salaries. He requests a precise explanation of how this will specifically materialize.
Haridus- ja teadusminister Kristina Kallas
AI Summary
The teacher's net income increases due to the tax cut; neither the teacher's salary nor the calculated base pay increases.
Aseesimees Jüri Ratas
AI Summary
Deputy Chairman Jüri Ratas thanks the Minister and states that he has no further questions.
Haridus- ja teadusminister Kristina Kallas
AI Summary
Minister of Education and Research Kristina Kallas thanks the listeners.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas said that he did not wish to open the floor for debate, and that the query had been answered.