Motor Vehicle Tax
Session: 15th Riigikogu, 3rd sitting, information briefing
Date: 2024-02-14 14:19
Participating Politicians:
Total Speeches: 12
Membership: 15
Agenda Duration: 11m
AI Summaries: 12/12 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
MP Siim Pohlak posed a question to Prime Minister Kaja Kallas regarding the car tax, focusing on the government's choices in generating budget revenue. Pohlak criticized the government's decision to tax the cars of Estonian people while leaving the unprecedented interest profits of major banks untaxed. He claimed that the revenue generated from both sources would be of a similar magnitude and asked why foreign big capital was being prioritized over the people of Estonia.
Prime Minister Kaja Kallas responded that imposing retroactive taxes is not appropriate for a state governed by the rule of law and would have been challenged. She explained that the government reached an agreement with the banks, resulting in the banks contributing 520 million euros in additional revenue to the budget between 2023 and 2025, which exceeds the projected revenue from the car tax (236 million euros). Kallas also highlighted the specific features of the banks' advance income tax. To Pohlak's follow-up question concerning the state's potential financial loss due to banks' accelerated dividend payouts, Kallas replied that she had answered the question regarding bank taxation and stressed that the purchasing power of the Estonian people is growing (salaries and benefits are increasing faster than prices) and the economic picture is not as bleak as it is painted. Kert Kingo, who asked an additional question, accused the government of hostility towards the Estonian people and asked when the Prime Minister would give up her official cars and start commuting to work year-round by public transport or bicycle in support of the green transition. Kallas explained that the Prime Minister's personal security requires the use of official cars according to the police threat assessment, but she uses a bicycle as soon as the weather permits.
Decisions Made 1
No decisions were made.
Esimees Lauri Hussar
AI Summary
Riigikogu member Siim Pohlak is submitting a question to Prime Minister Kaja Kallas regarding the motor vehicle tax.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Siim Pohlak is asking why the government, when seeking to generate budget revenue, prefers implementing a car tax and collecting revenue that way, instead of obtaining the same amount of money by taxing the interest profits of major banks. He requests a specific explanation that emphasizes fairness regarding the motives behind this choice.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas emphasized that Estonia is a state governed by the rule of law and that retroactive taxation will not be implemented. The banks’ total additional income of approximately 520 million euros for the period 2023–2025 stems from tax amendments, under which the 14% advance income tax for credit institutions will be abolished starting in 2025. Instead, 18% will be paid on current profits, and the taxation of dividends and other profit distributions will increase to 22%.
Esimees Lauri Hussar
AI Summary
He says your time has come.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas said that we will get 236 million from the car tax.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked [the previous speaker/the audience] and asked Siim Pohlak for a clarifying question.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Siim Pohlak asserted that the income tax hike and banks' accelerated dividend distributions could result in a long-term deficit for the state budget, compared to a scenario where dividends were paid out after the tax increase. He seeks answers to two questions: what is the magnitude of the state's long-term loss, and why is taxing Estonian residents prioritized over taxing foreign big capital.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kallas confirmed that banks will pay more into the budget than originally planned, and an agreement has been reached regarding this increase, meaning a retroactive tax is not expected. Simultaneously, people's purchasing power will improve due to the growth in wages and benefits, and the state will invest in security, requesting additional revenue from taxpayers to realize these goals and ensure job preservation.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks the assembly and asks Kert Kingo to pose a supplementary question.
Kert Kingo
AI Summary
Kert Kingo, in her speech, accuses the government of being the most hostile towards the Estonian state and its people, of raising taxes, and of worsening state finances. She also asks when the prime minister will give up the cars maintained at the taxpayer's expense for herself and her security detail, in order to support the reduction of car dependency and the green transition, and start commuting to work only by public transport or bicycle year-round.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas said that when the weather is nice, she rides her bike to work and recommends that others in Tallinn do the same. More bike paths are being built and cars should be used as little as possible, but the decision depends on the police threat assessment and the availability of the Minister of the Interior, and personal protection rules restrict freedom.
Esimees Lauri Hussar
AI Summary
He/She thanks [the participants] and announces that today's discussion of the second item has concluded.