Tax Policy
Session: 15th Riigikogu, 3rd sitting, information briefing
Date: 2024-02-07 15:29
Participating Politicians:
Total Speeches: 10
Membership: 15
Agenda Duration: 11m
AI Summaries: 10/10 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
At the Riigikogu session, a question directed at Prime Minister Kaja Kallas regarding tax policy, presented by Aleksandr Tšaplõgin, was discussed. Tšaplõgin criticized the government's decision to raise VAT and excise duties, a move that impacts low and middle-income residents, while simultaneously refusing to impose a solidarity excess profit tax on banks that are earning substantial profits. Prime Minister Kallas rejected the proposal for retroactive taxation in a rule of law state, explaining that the government had agreed with the banks to increase income tax, which will bring an additional 520 million euros to the state budget between 2023 and 2025. Responding to Tšaplõgin’s follow-up question about plans to combat poverty, Kallas highlighted wage growth that exceeds inflation, a significant increase in pensions, and a 33% increase in subsistence benefits. In a separate question, Helir-Valdor Seeder criticized the government’s planned car tax, calling it foolishness that worsens the regional situation and the business environment. Seeder also asked why the Culture Minister’s proposals to exempt vintage vehicles and tractors from the tax were not taken into account. Kallas defended the car tax as a measure recommended by the OECD and one that supports environmental objectives, emphasizing that the income tax reform is crucial for reducing labor costs and assisting the economy.
Decisions Made 1
No decisions were made
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar proposed moving on to the seventh question, which Riigikogu member Aleksandr Tšaplõgin is addressing to Prime Minister Kaja Kallas, and the topic of which is tax policy.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The presentation emphasizes that a quarter of the Estonian population lives in poverty and that 5% of families control 95% of the wealth. Furthermore, it criticizes the burden of VAT and excise duties placed on low and middle-income individuals, while noting the failure to implement a solidarity excess profit tax for banks. The report ultimately asks whose interests the government is truly serving—those of the entire Estonian nation or the interests of the 5% oligarchs?
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas stressed that the state does not support retroactive taxation on bank profits. Instead, the solution agreed upon with the banks will generate approximately 520 million euros in additional revenue between 2023 and 2025, which will go into the state budget and help finance the budget and societal objectives without damaging the economic climate or calling into question the fundamental principles of the rule of law.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offered his thanks and called upon Aleksandr Tšaplõgin to ask a clarifying question.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He/She thanks the Prime Minister and asks for clarification on the government's plan for combating poverty, while simultaneously referencing the previous discussion about poor banks.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas stated that with wage growth at 10.5% and inflation at 4.5%, people's real income is increasing. Pensions have risen significantly (17.6% year-on-year, or 20% for those receiving tax-exempt pensions). The subsistence benefit was raised by 33%. Furthermore, the need for energy subsidies has decreased by approximately 66% this year due to the fall in electricity prices, and questions concerning social benefits can be addressed separately.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked Helir-Valdor Seeder and requested a follow-up question.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder believes that the car tax plan is foolish, arguing that it will diminish the competitiveness of businesses and reduce people's ability to cope financially. He suggests that eliminating the existing tax burden would yield greater benefits. Furthermore, he questions why the government has ignored the Minister of Culture's proposals regarding the tax exemption for vintage and racing cars, and how this new tax will impact tractors and ATVs.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas notes that the income tax reform will increase people's incomes and reduce the labor tax, which in turn supports the economy and entrepreneurship. Simultaneously, the necessity of introducing a car tax is being discussed to meet both state budget requirements and environmental objectives. She emphasized the Riigikogu's role in processing legislation and requested that obstruction be avoided.
Esimees Lauri Hussar
AI Summary
He thanks the audience and announces that he is concluding the consideration of today's seventh question.