First Reading of the Draft Act on Amendments to the Income Tax Act (114 SE)
Session: 15th Riigikogu, 3rd sitting, plenary session
Date: 2024-01-17 17:21
Participating Politicians:
Total Speeches: 15
Membership: 15
Agenda Duration: 7m
AI Summaries: 15/15 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
Agenda item number 6 concerned the first reading of Bill 114, initiated by Riigikogu members Martin Helme, Kert Kingo, and Helle-Moonika Helme, regarding the amendment of the Income Tax Act. The bill aimed to lower the income tax rate, thereby opposing the tax hikes planned by the government. Presenter Martin Helme (EKRE) used the opportunity to deliver sharp criticism aimed at the government's economic policy, accusing the Prime Minister of mishandling the energy crisis and the subsequent 40 percent inflation. Helme stressed that in a situation where the state budget is running low on funds, taxes should be lowered, not raised, to stimulate the economy.
The discussion also focused on EKRE’s stance on the tax system. Helme affirmed that the party ideally supports a flat income tax, but noted that the currently effective system (with the 'tax hump') is essentially progressive. He criticized the Reform Party's plan to abolish the tax hump and raise the tax-free threshold, deeming it unreasonable and detrimental to the state budget in the current economic climate. Opposition politicians (Tanel Kiik) also inquired about the obstructive nature of the bill, to which Helme replied ironically that there was a wide selection of bills with different rates, but in reality, it would have been sufficient if the government hadn't started tinkering with the income tax rate at all. The lead committee, the Finance Committee, proposed rejecting the bill after a brief discussion.
Decisions Made 1
The Riigikogu rejected Draft Act 114 during its first reading (44 votes for, 16 against), and it was consequently dropped from the legislative procedure.
Most Active Speaker
The most active speaker was Martin Helme, one of the bill's initiators and its presenter. Helme represented the right-wing opposition (EKRE), using his speeches to sharply criticize the government's economic management and advocate for lowering the income tax rate as the only sensible solution for emerging from the economic crisis. He provided detailed answers to all the questions posed, clarifying the party's stance on both the progressive income tax and the elimination of the tax hump.
Aseesimees Toomas Kivimägi
AI Summary
The Riigikogu is set to begin the first reading of Bill 114, which seeks to amend the Income Tax Act. The bill was initiated by Martin Helme, Kert Kingo, and Helle-Moonika Helme, and Riigikogu member Martin Helme will serve as the rapporteur.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme is accusing the Prime Minister of mishandling the energy crisis, claiming that this mismanagement led to 40% inflation and a shortage of funds, which in turn caused people to start striking. Arguing that the money isn't there anyway, he recommends lowering taxes to stimulate the economy. To achieve this, they have prepared a draft amendment to the Income Tax Act, and he urges everyone to support it.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi offered his thanks and noted that the participant had at least two questions, before inviting Aleksei Jevgrafov to answer them.
Aleksei Jevgrafov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Aleksei Jevgrafov thanks Martin, commends the bill for its thoroughness and careful consideration, and asks for his opinion on the progressive income tax: specifically, whether he supports it and what his overall view is.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Our party is ideologically in favor of a flat income tax, but the tax system in Estonia is currently essentially progressive, and we will not change that in practice.
Tanel Kiik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Tanel Kiik is asking the EKRE party leader what their official position is regarding the income tax rate, considering they have submitted many different bills, some of which might be intended purely for obstruction.
Aseesimees Toomas Kivimägi
AI Summary
Tanel Kiik is introduced at the beginning of the address.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme said that these are bills proposed by individual members of the Riigikogu, not those belonging to the faction. The selection is broad, and sometimes it is difficult to distinguish a troll bill from an actual draft act. He jokingly added that they should have just left the previous rate in place and avoided a flood of new bills.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi addresses Lauri Laats and asks him to speak.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats notes that although the speaker does not support a progressive income tax, a small progressive income tax effectively applies in Estonia due to the 'tax hump.' The Reform Party is eliminating the tax hump, but in his opinion, the stance regarding its abolition is rather negative, and he concludes by asking what the actual position on this tax hump really is.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme said that while they were in government, they did not support changing the income tax system in this manner and voted against its implementation. He added that, in his view, reworking or reversing the system, especially when combined with raising the tax-free threshold significantly, is not reasonable in the current economic climate, because it will cause confusion and lead to a state budget deficit.
Aseesimees Toomas Kivimägi
AI Summary
The rapporteur thanked the body, confirmed that there were no further questions, and then, on behalf of the lead committee, invited Annely Akkermann, the Chair of the Riigikogu Finance Committee.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The commission reviewed the draft proposal, but no actual debate took place, and thus it was decided to propose rejecting the bill.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi announced that the lead committee intends to reject Bill 114 during the first reading, and subsequently put the matter to a vote among his colleagues.
Aseesimees Toomas Kivimägi
AI Summary
During the first reading, the Riigikogu voted as follows: 44 in favor, 16 against, with 0 abstentions. Bill 114 was rejected and is consequently removed from the legislative procedure.