Draft Bill Amending the Income Tax Act (118 SE), First Reading
Session: 15th Riigikogu, 3rd sitting, plenary session
Date: 2024-01-17 17:32
Participating Politicians:
Total Speeches: 12
Membership: 15
Agenda Duration: 5m
AI Summaries: 12/12 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The Riigikogu debated the first reading of Draft Act 118 amending the Income Tax Act, which was initiated by Riigikogu members Kert Kingo, Arvo Aller, and Rain Epler. The primary goal of the draft was to reduce the income tax rate to 19.7% in order to alleviate the worsening economic situation and leave more disposable income in the hands of the public. Initiator Arvo Aller (pid: 1Ncb7MdzYyE) emphasized that a lower tax would improve people's ability to cope financially and partially boost consumption, referencing the principles of economics textbooks, according to which lowering taxes stimulates the economy.
However, the lead committee, the Finance Committee, proposed rejecting the draft. Committee Chairman Annely Akkermann (pid: OYObvaclAIE) explained that the draft only concerns the personal income tax rate and does not affect corporate income tax. Opposition representative Kalle Grünthal (pid: WeJj4SPnuVY) sharply criticized the committee's stance, arguing that lowering taxes is vital for promoting entrepreneurship and preventing bankruptcies, and labeled the government's fiscal policy as anti-people. Despite the opposition's resistance, the majority of the Riigikogu voted in favor of rejecting the draft.
Decisions Made 1
Bill 118 was rejected during the first reading by a vote of 34 in favor and 11 against, and it was consequently removed from the legislative process as recommended by the lead committee.
Most Active Speaker
The most active speaker was Kalle Grünthal, who posed two questions to both the bill's initiator and the chairman of the lead committee. Grünthal represented the position of the opposition (EKRE), supporting the reduction of income tax with the goal of stimulating the economy and sharply criticizing the coalition's fiscal policy, deeming it detrimental to entrepreneurship and anti-people.
Aseesimees Toomas Kivimägi
AI Summary
The Riigikogu is beginning the first reading of Draft Law No. 118, which proposes amendments to the Income Tax Act, initiated by Kert Kingo, Arvo Aller, and Rain Epler.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller said that the purpose of the submitted draft amendment to the Income Tax Act is to lower the income tax rate to 19.7% so that people in a difficult economic situation would have more money left over and be able to cope, and he asked for the bill to be supported.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi offered his thanks and invited Kalle Grünthal to ask his question.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalle Grünthal notes that economics textbooks say that raising the income tax rate reduces net income and consumption, while lowering income tax increases consumption, investments, employment, and economic growth, and he asks if this is the principle of this bill.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Lowering the income tax rate puts more money in people's pockets, enabling them to meet their basic needs first and foremost, which in turn leads to a partial increase in consumption.
Aseesimees Toomas Kivimägi
AI Summary
Thank you. There are no further questions. I now ask the leading committee to present the report, which will be delivered by Annely Akkermann, Chairman of the Riigikogu Finance Committee.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann informed her colleagues that the committee had discussed the draft legislation and decided to propose its rejection.
Aseesimees Toomas Kivimägi
AI Summary
At the end of the speech, Kalle Grünthal was given the opportunity to ask a question.
Kalle Grünthal
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Kalle Grünthal asks why the draft bill is being rejected, emphasizes that lowering taxes promotes entrepreneurship, and notes that the current fiscal policy is driving businesses into bankruptcy and is inhumane.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
This bill addresses the income tax rate payable on the income of natural persons and non-residents. It clarifies that the tax is collected by the employer and transferred to the Tax Authority for deposit into the state budget. This measure does not affect corporate income tax.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi announced that he was opening and closing the discussions, and that the lead committee's proposal is to reject Bill 118 at the first reading, requesting that members take a position and vote.
Aseesimees Toomas Kivimägi
AI Summary
The Riigikogu voted on Bill 118: 34 were in favor, 11 were against, and there were 0 abstentions; it was rejected during the first reading and will be dropped from the legislative process.