First Reading of the Bill to Amend the Value-Added Tax Act (196 SE)
Session: 15th Riigikogu, 3rd sitting, plenary session
Date: 2024-01-10 17:32
Participating Politicians:
Total Speeches: 6
Membership: 15
Agenda Duration: 5m
AI Summaries: 6/6 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The agenda item concerned the first reading of Draft Act 196 on Amendments to the Value-Added Tax Act, initiated by Riigikogu members Jaak Valge, Kalle Grünthal, and Varro Vooglaid. The main objective of the draft act was to lower the VAT rate in order to provide relief and stimulate the Estonian economy, which, according to the initiators, is in a deep recession and moving towards an economic crisis. The rapporteur, Jaak Valge (PID: 30BrsGZcIZg), emphasized in his speech the need to avoid historical mistakes, citing the Great Depression of the 1930s as an example, where the contraction of the economy through tax increases and the restriction of the money supply led to catastrophic consequences. He called upon the Riigikogu to support the draft act to revitalize the economy in accordance with modern economic policy understanding, which dictates that during times of crisis, the economy must be stimulated, not contracted. The representative of the lead committee, the Finance Committee, Annely Akkermann (PID: OYObvaclAIE), briefly announced that the committee had discussed the draft act but proposed rejecting it.
Decisions Made 1
The leading committee, specifically the Finance Committee, proposed rejecting the draft bill during its first reading. Following the vote, in which 39 Riigikogu members supported the motion and 13 opposed it, Draft Bill 196 was rejected and subsequently dropped from the proceedings.
Most Active Speaker
The most active speaker was the bill’s proponent, Jaak Valge (PID: 30BrsGZcIZg), who delivered a detailed presentation justifying the necessity of reducing the VAT rate using historical and economic arguments. Valge represented the position of the bill’s initiators, which was focused on stimulating the economy during a crisis. Consequently, he adopted an opposition stance, contrasting the desire of the leading committee and the majority to reject the draft legislation.
Aseesimees Jüri Ratas
AI Summary
The Riigikogu resumed consideration of the 10th item on the agenda. Riigikogu member Jaak Valge was then invited to deliver the presentation for the first reading of Bill 196, which amends the Value Added Tax Act and was initiated by Riigikogu members Jaak Valge, Kalle Grünthal, and Varro Vooglaid.
Jaak Valge
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The purpose of this bill is to lower the Value Added Tax (VAT) during the crisis in order to stimulate the economy. This approach is based on historical lessons from 1929–1933, as well as Estonian experience, which demonstrates that resolving a crisis requires stimulating the economy, not contracting it.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas thanked the rapporteur and invited Annely Akkermann, Chair of the Finance Committee, to the podium.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Finance Committee discussed the draft bill. No questions arose, and the committee proposed rejecting the bill.
Aseesimees Jüri Ratas
AI Summary
Ratas announced that he does not wish to begin negotiations and is submitting the leading committee's proposal to reject draft bill 196 at the first reading for a vote.
Aseesimees Jüri Ratas
AI Summary
Bill 196 was rejected at its first reading with 39 votes in favor and 13 against, and has been dropped from the proceedings. The consideration of the tenth item on the agenda is concluded.