First Reading of the Bill on Amendments to the Value-Added Tax Act (108 SE)
Session: 15th Riigikogu, 3rd sitting, plenary session
Date: 2024-01-10 16:47
Participating Politicians:
Total Speeches: 8
Membership: 15
Agenda Duration: 5m
AI Summaries: 8/8 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The agenda item concerned the first reading of Bill 108, initiated by Riigikogu members Kert Kingo and Leo Kunnas, regarding the amendment of the Value Added Tax Act. The bill's objective was to lower the VAT rate to 17.5%, in opposition to the tax increase planned by the government. Leo Kunnas, the representative of the initiators, emphasized in his presentation that the proposed 2 percentage point increase in VAT under current recessionary conditions is unlikely to produce the desired effect. Kunnas assessed that the hike would reduce turnover and encourage cross-border trade into Latvia, meaning no significant improvement in revenue collection is anticipated.
Finance Committee Chairman Annely Akkermann announced that the government does not support the bill. The committee had made a procedural decision to propose that the Riigikogu reject the bill during the first reading. Since no negotiations were requested, they immediately proceeded to vote on the leading committee's proposal.
Decisions Made 2
The Finance Committee proposed to the Riigikogu that draft act 108 be rejected at the first reading.
Bill 108 was rejected during the first reading by a vote of 43 in favor to 15 against, and consequently dropped from the legislative process.
Most Active Speaker
The most active speaker was one of the initiators of the draft bill, Riigikogu member Leo Kunnas. He presented the substance and rationale of the bill, stressing that raising the VAT rate during an economic recession is ineffective and will divert trade to the neighboring country, Latvia. Kunnas represented the position of the initiators (the opposition), who opposed the tax hike proposed by the government.
Aseesimees Jüri Ratas
AI Summary
The Riigikogu now moves to the fourth item on the agenda, which is the first reading of Draft Bill 108, introduced for the amendment of the Value Added Tax Act. The bill will be presented by Riigikogu member Leo Kunnas.
Leo Kunnas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Leo Kunnas stated that Draft Bill 108 SE proposes reducing the value-added tax (VAT) to 17.5%. However, he believes that the current two-percentage-point VAT increase will not yield any significant results during an economic downturn, and may instead reduce sales and compel shoppers to go to Latvia.
Aseesimees Jüri Ratas
AI Summary
He specifies that the presenter cannot present it on behalf of Kert Kingo, because he/she is also an initiator, so the credit belongs to both of them.
Leo Kunnas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
I didn't mention that; instead, I said that he was originally supposed to do it, but he's fallen ill.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas confirmed that everything was clear and thanked you, and then invited Annely Akkermann, the Chair of the Finance Committee, to the Riigikogu podium to serve as the rapporteur.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Finance Committee debated the draft legislation. The government did not support it, and no questions were posed to Martin Helme, the representative of the initiators. Procedurally, it was decided not to include the bill on the plenary agenda, to appoint a representative for the lead committee, and to propose that the bill be rejected.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas requests that the debate not be opened and instead moves the lead committee's proposal, the substance of which is to reject Bill 108 at the first reading, and calls for a vote.
Aseesimees Jüri Ratas
AI Summary
Bill 108 was rejected during its first reading with a result of 43 in favor and 15 against; there were no abstentions. It is consequently dropped from the proceedings, and the consideration of the fourth agenda item is concluded.