First Reading of the Draft Act amending the Value Added Tax Act (87 SE)
Session: 15th Riigikogu, 3rd sitting, plenary session
Date: 2024-01-10 16:40
Participating Politicians:
Total Speeches: 8
Membership: 15
Agenda Duration: 7m
AI Summaries: 8/8 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
This agenda item concerned the first reading of Draft Act 87 on amendments to the Value Added Tax Act, initiated by Riigikogu members Helle-Moonika Helme, Martin Helme, and Siim Pohlak. The primary objective of the bill was to reduce the standard VAT rate, which, according to the initiators, was intended to foster economic growth, boost residents' purchasing power, and enhance the competitiveness of Estonian enterprises. The presenter of the bill, Helle-Moonika Helme, emphasized that this constituted the application of a simple economic truth, although the bill had been submitted back in May 2023 and only reached discussion later, meaning the currently applicable VAT rates had changed in the interim. The Finance Committee, designated as the lead committee, discussed the bill on September 12 and announced that the Government of the Republic did not support it. Annely Akkermann, Chairman of the Finance Committee, gave a presentation explaining that the committee had decided by a majority vote (7 in favor, 4 against) to propose to the Riigikogu that the bill be rejected in the first reading. Since there was no desire to open negotiations, the lead committee's proposal for rejection was immediately put to a vote, resulting in the bill being dropped from the legislative proceedings.
Decisions Made 2
The Finance Committee decided at its meeting to propose to the Riigikogu that Draft Bill 87 be rejected during the first reading.
The Riigikogu supported the leading committee's proposal to reject the draft act (44 votes in favor, 14 against), resulting in Bill 87 being dropped from the proceedings.
Most Active Speaker
The most active speaker was Helle-Moonika Helme, the initiator of the draft legislation, who presented the substance and justifications of the bill. She represented the opposition's viewpoint, stressing the positive effect that lowering the VAT would have on the economy and on residents' ability to manage financially.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas announced that we would move to the third item on the agenda, commencing the first reading of Draft Act 87 on the amendment of the Value Added Tax Act, and Riigikogu member Helle-Moonika Helme was invited to serve as the rapporteur.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
He/She draws attention to the noise in the hall and poses the rhetorical question of who will leave and who will stay.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas greets his colleagues and requests quiet in the hall.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme introduced a draft amendment to the Value Added Tax Act, which proposes reducing the standard rate from 22% to 20% while maintaining the lower rates of 9% and 5%. This measure is claimed to result in falling prices, increased purchasing power for residents, and improved competitiveness for businesses, thereby fostering economic growth.
Aseesimees Jüri Ratas
AI Summary
The Deputy Speaker of the Riigikogu, Jüri Ratas, thanks the rapporteur, announces that there are no questions, and invites Annely Akkermann, the Chair of the Finance Committee, to the Riigikogu rostrum as the next rapporteur.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
During the discussion held in the Finance Committee on September 12, it became clear that the government does not support the bill. It was decided to place the bill on the plenary session agenda for September 19, designate the committee as the lead committee (or rapporteur), and propose that the bill be rejected. In the vote on this proposal, 7 committee members favored rejection and 4 opposition members were against.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas announced that the leading committee recommends rejecting Bill 87 during its first reading, and proposed that his colleagues vote in favor of this position.
Aseesimees Jüri Ratas
AI Summary
44 in favor, 14 against, and there were no abstentions; the proposal found support, but consequently, Draft Bill 87 was rejected during the first reading, the proceedings were terminated, and the consideration of the third item on the agenda is concluded.