First Reading of the Draft Act on Amendments to the Value Added Tax Act (184 SE)
Session: 15th Riigikogu, 3rd sitting, plenary session
Date: 2024-01-10 17:17
Participating Politicians:
Total Speeches: 21
Membership: 15
Agenda Duration: 10m
AI Summaries: 21/21 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu debated the first reading of the Bill on the Amendment of the Value Added Tax Act (184 SE), which had been initiated by Riigikogu members Leo Kunnas, Siim Pohlak, and Anti Poolamets. The goal of the bill was to lower the VAT rate to 18.5% of the taxable value. Anti Poolamets (PID: 1vrB8ts4yQI), the presenter of the bill, primarily used his address to criticize the coalition, faulting them for their inability to organize additional sittings to overcome obstruction, calling it "genuine complacency." Poolamets also challenged the government's stance on Estonian tax sovereignty, arguing that European Union (EU) rules significantly restrict Estonia's right to impose taxes.
Annely Akkermann (PID: OYObvaclAIE), the Chairman of the Finance Committee, confirmed that the government does not support the bill. She rejected Poolamets' accusations of lying, explaining that while the EU VAT Directive sets the framework (allowing a limited number of tax exceptions), it does not directly impose taxes on member states. During the debate, Akkermann was also asked about the background of the 2009 VAT increase and the government's overall tax burden strategy, to which she replied that the tax burden relative to GDP should remain within the 33–34% range. The lead committee proposed rejecting the bill.
Decisions Made 1
Draft Bill 184 was rejected during the first reading following a motion by the lead committee (the Finance Committee) (41 votes in favor, 13 against), and was subsequently dropped from the legislative procedure.
Most Active Speaker
The most active speaker was Annely Akkermann, Chair of the Finance Committee, who represented the coalition (Reform Party) and the position of the lead committee. She presented the committee’s report, rejected the bill initiator’s accusations of lying about EU tax rules, and provided comprehensive answers to questions from Rene Kokk and Mart Helme concerning the government’s tax policy and objectives regarding the tax burden.
Aseesimees Jüri Ratas
AI Summary
The Riigikogu now proceeds to the eighth item on the agenda, which is the first reading of Draft Act 184 on amendments to the Value-Added Tax Act, initiated by Leo Kunnas, Siim Pohlak, and Anti Poolamets, and Anti Poolamets is invited to take the floor.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets informed his colleagues that he would submit a proposal to raise the VAT rate to 18.5% based on the taxable value.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas emphasizes that the discussion must not become purely technical.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
He confirms that he already has the ability to heal himself.
Aseesimees Jüri Ratas
AI Summary
Deputy Chairman Jüri Ratas emphasized that the report will be provided after all.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets confirms that he has already fixed something.
Aseesimees Jüri Ratas
AI Summary
He emphasizes that it must not be handed over, but rather an overview needs to be presented.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets claims that the draft bill would raise the VAT rate to 18.5%, accuses the coalition of obstruction and of practically avoiding all additional sessions required to meet the necessary demands, criticizes the coalition's desire for convenience and Annely Akkermann, and asserts that the European Union sets the tax rates and that Estonia is not sovereign in tax law, calling for a reading of the EU founding treaties and the rules governing the establishment of VAT rates.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker of the Riigikogu Jüri Ratas offered his thanks, noted that there were no questions, and then invited Annely Akkermann, Chairman of the Riigikogu Finance Committee, to the podium.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann said that the Finance Committee discussed the draft bill, that no questions were posed to the initiator's representative, Martin Helme, that the government does not support the bill, and that she will likely dismiss the accusation of lying. She added that the VAT directive exists in Europe, two tax derogations are permitted, and for some commodity groups, a "super-derogation" ranging between 0% and 4% is allowed—that is true.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas asks that you do not leave so quickly, emphasizing your efficiency in chairing the session, and then invites Rene Kokk to present his question.
Aseesimees Jüri Ratas
AI Summary
He emphasizes that things must be done one thing at a time.
AI Summary
Rene Kokk asks whether the draft bill reached the chamber on time, and whether the temporary raising of the 2009 VAT from 18% to 20% was ultimately supposed to lead to 22% or revert back to 18%. He also asks whether there was a discussion about this, and what he, as a long-time member of the Reform Party, thinks of this experience.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
We submitted the draft bill to the chamber on time, but the Riigikogu agenda is overburdened, and getting it to the plenary session is dragging on, even though the board cannot extend the time allotted. Furthermore, the committee did not discuss reverting the VAT rate back to 18%.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas asks Mart Helme to come and speak.
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Mart Helme cites the example of 18th-century English taxes and asks what their government’s tax policy looks like—are we going to raise VAT and other taxes, and simultaneously start introducing new taxes, such as a beard tax?
Aseesimees Jüri Ratas
AI Summary
He/She thanks you and announces that your time is up.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The coalition aims for Estonia's tax burden relative to GDP to remain stable within the 33–34% range (this excludes the national defense levy, which adds an additional 3% of GDP on top of the existing 2% NATO commitment). The general burden is projected to be around 33.8%, as taxation levels naturally adjust over time in line with normal economic development.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas announced that the steering committee recommends rejecting Draft Law 184 at the first reading, and subsequently put the matter to a vote.
Aseesimees Jüri Ratas
AI Summary
The result of the first reading was 41 in favor and 13 against—Draft Bill 184 was rejected and is hereby dropped from the proceedings; the consideration of the eighth item on the agenda is concluded.