First Reading of the Draft Act on Amendments to the Income Tax Act (177 SE)
Session: 15th Riigikogu, 3rd sitting, plenary sitting.
Date: 2024-02-07 19:33
Participating Politicians:
Total Speeches: 11
Membership: 15
Agenda Duration: 9m
AI Summaries: 11/11 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The agenda item concerned the first reading of Draft Act 177 on the amendment of the Income Tax Act, initiated by Riigikogu members Leo Kunnas, Henn Põlluaas, and Ants Frosch. The draft act, which was submitted already on May 13, concerned changing the corporate income tax rate. The initiator, Ants Frosch (UgsN8BSC7Q0), drew attention in his report to several technical issues, including an unrealistic entry into force date (January 1, 2024) and a typo in the explanatory memorandum, while simultaneously requesting support for the draft act.
Annely Akkermann (GdIiJfFcmac), Chairman of the Finance Committee, gave an overview of the committee session where the draft act was discussed alongside the identical Draft Act 182. The Committee received a non-supportive position from the Government of the Republic, the main reason for which was the draft act's negative impact on tax revenue, conflicting with current budgetary objectives. Although the technical errors could have been corrected through amendments, the Committee decided to propose that the Riigikogu reject the draft act. The Plenary supported the Committee's proposal, rejecting the draft act with 37 votes.
Decisions Made 3
The Finance Committee unanimously decided to place the draft legislation on the agenda for October 10, 2023, and to designate the committee chair, Annely Akkermann, as the representative of the lead committee.
The Finance Committee decided, based on the results of the vote (7 in favor, 1 against), to propose to the Riigikogu that Bill 177 be rejected at the first reading.
The Riigikogu rejected Bill 177 on the first reading (37 in favor, 8 opposed), which resulted in the bill being dropped from the legislative proceedings.
Most Active Speaker
The most active speaker was Annely Akkermann, the Chair of the Finance Committee. She presented the position of the lead committee, explaining the substance of the draft legislation, the reasons for the government's lack of support (a negative impact on tax revenue), and providing an overview of the committee's decisions that led to the proposal for rejection. Akkermann also had to defend the committee's actions against criticism from the session chair, who took issue with the simultaneous handling of two identical bills and the fact that the draft legislation was presented to the committee by a person who was not the initiator.
Aseesimees Jüri Ratas
AI Summary
Under the eighth item on the agenda, the first reading of Draft Act 177 on the Amendment of the Income Tax Act will take place. This draft was submitted by Leo Kunnas, Henn Põlluaas, and Ants Frosch, and Ants Frosch will serve as the presenter.
Ants Frosch
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Ants Frosch noted that although the draft bill had passed through the committee, its pace was actually not quick, and its entry into force on January 1, 2024, was unrealistic. Attention was drawn to a spelling error, and he nevertheless asked that the bill be supported so that future readers would view the work of the Riigikogu professionally.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas thanked the rapporteur, noted that there were no questions and that errors could be corrected through amendments, and then called upon Annely Akkermann, Chairman of the Riigikogu Finance Committee.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Finance Committee discussed two identical draft amendments to the Income Tax Act (177 and 182). It noted typographical errors in the explanatory memoranda, and although the government did not support either draft, the committee decided consensually to place the bill on the agenda and appoint a representative for the lead committee. Nevertheless, during the subsequent vote, the recommendation was to reject the bill (7 votes for, 1 against).
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas thanked the waiter and asked Lauri Laats to ask a question.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats requests that the rapporteur also present the government's justifications in the Riigikogu chamber for why they did not support this draft legislation.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The government sent us a page-long letter, and the summary indicates that the draft legislation introduced by members of the Riigikogu to amend tax laws will have a negative impact on tax revenue, which conflicts with current budgetary goals.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas emphasized that every bill must be presented separately, and the initiator of the bill or the person who initiated it should be present in the committee, adding that he did not see Siim Pohlak's name among the initiators.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Representing the initiators, Siim Pohlak, who is also a member of the Finance Committee, attended the committee session and presented the draft legislation for the initiatives. The two identical drafts propose setting the income tax rate at 15%. Leo Kunnas is among these initiators, and notably, the typographical errors and the date of initiation in both drafts are identical.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas thanked the presenter for the thorough report, noting that there were no requests for debate, and then moved the preparations to a vote, stating that the committee's proposal was to reject Bill 177 at the first reading, and called upon his colleagues to take a stand and cast their votes.
Aseesimees Jüri Ratas
AI Summary
Bill 177 was rejected during its first reading with a vote of 37 in favor, 8 against, and no abstentions. It is therefore removed from the proceedings, and the consideration of the eighth item on the agenda is concluded.