First Reading of the Draft Act on Amendments to the Value Added Tax Act (149 SE)
Session: 15th Riigikogu, 3rd sitting, plenary session
Date: 2024-01-10 16:56
Participating Politicians:
Total Speeches: 18
Membership: 15
Agenda Duration: 15m
AI Summaries: 18/18 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The agenda item concerned the first reading of Draft Act 149, initiated by Riigikogu members Kert Kingo, Arvo Aller, and Rain Epler, concerning amendments to the Value Added Tax Act. The purpose of the bill was to reduce the standard VAT rate to 16.5%, which the initiators justified by the necessity of improving the standard of living for the populace. Initiator Arvo Aller emphasized in his presentation that the proposed rate would still remain higher than the minimum 15% established by the European Union.
The lead committee, the Finance Committee, speaking through its Chairman Annely Akkermann, immediately proposed rejecting the bill. The subsequent discussion focused mainly on issues concerning the sovereignty of tax law in relation to European Union directives, during which Kalle Grünthal and Anti Poolamets repeatedly raised questions about the actual autonomy of member states in imposing taxes and determining exceptions. Prior to the vote, the faction of the Conservative People's Party of Estonia requested a recess. In the final vote, Draft Act 149 was rejected with 43 votes in favor and 17 against, which resulted in its removal from the proceedings.
Decisions Made 2
Martin Helme, the representative of the Estonian Conservative People's Party faction, requested a ten-minute recess before the vote, and the request was granted.
The Steering Committee's proposal to reject Bill 149 at the first reading was adopted by a vote of 43 in favor and 17 against, consequently causing the bill to be dropped from the proceedings.
Most Active Speaker
The most active speaker was Annely Akkermann (pid: OYObvaclAIE), Chairman of the Finance Committee, who presented the lead committee’s position recommending the rejection of the draft bill. She repeatedly answered questions from Kalle Grünthal and Anti Poolamets concerning the sovereignty of Estonian tax law within the context of European Union VAT directives, explaining that the proposed rate falls within the ranges set by the EU, but that member states have limited possibilities for implementing specific derogations. Akkermann represented the lead committee’s position, which was in favor of rejecting the draft bill.
Aseesimees Jüri Ratas
AI Summary
The first reading of Draft Bill 149 for the amendment of the Value Added Tax Act, initiated by Riigikogu members Kert Kingo, Arvo Aller, and Rain Epler, is now commencing. Mr. Arvo Aller is invited to serve as the rapporteur. Silence and respect are requested in the chamber.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller said that at the first reading of Bill 149, the intention was to lower the VAT rate, but according to the current amendment, it would raise it to 16.5%, which is higher than the EU minimum.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas thanked the speaker for the comprehensive report, stated that there were no questions, and invited Annely Akkermann, Chair of the Finance Committee, to the Riigikogu rostrum for her presentation.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Finance Committee discussed the bill and proposed that it be rejected.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker of the Riigikogu Jüri Ratas called upon Kalle Grünthal to present a question and asked Annely Akkermann not to leave the podium.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He asks whether Estonia can independently set the VAT rate or if it must only follow the European Union guidelines.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The VAT Directive is already effective, and it lays out the rate ranges and exceptions. The VAT rate proposed in this draft bill fits neatly within those ranges, so there's really nothing to worry about.
Aseesimees Jüri Ratas
AI Summary
Anti Poolamets is invited to speak at the beginning of the address.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets states that the right to regulate taxation should belong entirely to the member states, but due to EU rules, they cannot even set VAT derogations, and they are being told that tax law belongs to the European Union.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann stated that member states can actually grant tax exemptions and apply two different VAT rates, including for medicines, for instance.
Aseesimees Jüri Ratas
AI Summary
The debate is very substantive and continues; Kalle Grünthal is called upon to speak.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalle Grünthal notes that at the time of joining the European Union, we were not told about the obligation to follow directives in this context, and he asks how this is now permissible.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann stated that the directives likely originate from the agreements and chapters related to joining the European Union; she doesn't recall them, nor has she read all of them, and these specific questions were not raised during the committee's discussion of the draft legislation.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas announced that negotiations would not be opened if Martin Helme did not wish for them, and the leading committee has decided to reject the first reading of Bill 149 and prepare for the vote.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
The faction wishes to hold a consultation within the next ten minutes and requests a recess for this purpose.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas requested a ten-minute recess.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas announced that the recess was over, and called for a vote on the lead committee’s proposal to reject Bill 149 during the first reading, requesting that everyone take a stand and cast their vote.
Aseesimees Jüri Ratas
AI Summary
The voting result was 43 in favor, 17 against, with no abstentions; draft bill 149 was rejected during the first reading and is removed from the proceedings, and the consideration of the sixth item on the agenda is concluded.