New taxes

Session: 15th Riigikogu, 3rd sitting, information briefing

Date: 2024-04-03 15:01

Total Speeches: 19

Membership: 15

Agenda Duration: 16m

AI Summaries: 19/19 Speeches (100.0%)

Analysis: Structured Analysis

Politicians Speaking Time

Politicians

Analysis

Summary

The first question during the Riigikogu information session centered on an inquiry directed at Prime Minister Kaja Kallas concerning the government's planned new taxes, specifically the sweetened drinks tax (the so-called sugar tax). The question was posed by opposition representative Vadim Belobrovtsev (Centre Party), who challenged the justification for introducing the new tax, given that the government is already increasing several existing taxes (VAT, income tax, excises) and planning new ones (the car tax). Belobrovtsev referred to a recent session of the special committee for state budget control, where only Health Minister Riina Sikkut defended the tax proposal, while businesses and experts opposed it, citing the tax's inefficiency in curbing consumption.

Prime Minister Kaja Kallas defended the sugar tax, stressing that its primary objective is to improve public health, particularly by mitigating issues related to childhood obesity and dental health. Kallas cited Portugal as an example, where the sweetened beverages tax helped reverse the rising trend of childhood obesity. Kallas also accused the opposition, particularly the Centre Party, of populist behavior, noting that the Centre Party itself had supported a similar tax in 2016. Kallas emphasized that the goal of tax policy is to tax vices and consumption, rather than labor. The opposition (Anastassia Kovalenko-Kõlvart) subsequently criticized the government for double standards, arguing that implementing health policy through taxation is cynical, especially given that subsidies for school sports and extracurricular activities have been cut simultaneously.

Decisions Made 1
Collective Decision

No official decisions were made during the information hour. During the discussion, views were exchanged regarding the government's planned tax on sweetened beverages and tax policy more broadly.

Most Active Speaker
Anastassia Kovalenko-Kõlvart
Anastassia Kovalenko-Kõlvart

Eesti Keskerakonna fraktsioon

The most active participant and the one who sharpened the debate was Anastassia Kovalenko-Kõlvart (Centre Party, opposition). She posed a long and critical supplementary question, accusing the Prime Minister of applying double standards (making health policy through tax policy) and engaging in cynical revenue collection. Kovalenko-Kõlvart also highlighted alternative funding proposals (a bank tax, a digital tax) and criticized the government's cuts in areas supporting children's health (school sports, extracurricular activities). Furthermore, she used a procedural question to present the Prime Minister with yet another rebuttal, emphasizing that the Centre Party has already submitted its draft bills regarding alternative taxes to the Riigikogu.

Esimees Lauri Hussar
15:01:34
AI Summary

The Riigikogu is beginning today's question session, and the first question, addressed to Prime Minister Kaja Kallas, concerns the topic of new taxes. The question will be submitted by Riigikogu member Vadim Belobrovtsev.

Vadim Belobrovtsev
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioon
15:01:44
AI Summary

Belobrovtsev describes the special committee session on the sugar tax, noting that the only person defending the idea was Health Minister Riina Sikkut, while everyone else was skeptical or opposed. He questions whether it is right to introduce a new tax when the government is already raising VAT, income tax, and excise duties, and is also considering a car tax and taxing pensions.

Esimees Lauri Hussar
15:04:01
AI Summary

Speaker Lauri Hussar offers his thanks and makes a request to the Prime Minister.

Peaminister Kaja Kallas
15:04:02
AI Summary

Kallas claims that in 2016, the chairman of the Center Party supported the sugar tax. She also points out that people representing health-related viewpoints were not invited to the special committee meeting, and that the opposition and Isamaa have simultaneously proposed both a sugar tax and a car tax, demonstrating the changeability of their positions depending on their political standing.

Esimees Lauri Hussar
15:05:44
AI Summary

Chairman Lauri Hussar thanks the previous speaker and invites Vadim Belobrovtsev to ask a clarifying question.

Vadim Belobrovtsev
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioon
15:05:46
AI Summary

Vadim Belobrovtsev debates the appropriateness of introducing a new sugar tax in the current climate, suggesting that adding further taxes could be ill-advised and might not reduce consumption, citing Portugal as an illustrative example.

Peaminister Kaja Kallas
15:07:30
AI Summary

Prime Minister Kaja Kallas emphasized that the tax on sweetened beverages is a sensible tool for curbing childhood obesity, citing Portugal's successful example and noting that this idea must be re-advocated, especially when paired with other measures, such as increasing physical activity among children.

Esimees Lauri Hussar
15:09:42
AI Summary

The Chair thanks [the speaker] and asks Anastassia Kovalenko-Kõlvart to pose an additional question.

15:09:45
AI Summary

Anastassia Kovalenko-Kõlvart accuses the government of double standards and creating new taxes, claiming that while money is being collected in the name of children's health, funding for school lunches, hobby education, and other youth support is simultaneously being cut. She also emphasizes that the state is forcing every ministry to propose new taxes and subsequently blaming the Centre Party.

Peaminister Kaja Kallas
15:11:52
AI Summary

Prime Minister Kaja Kallas stated that covering the state budget requires collecting funds from taxpayers, and that taxation should be aimed at reducing consumption, harmful vices, and environmental damage, rather than increasing the taxation of labor. She added that the government is implementing long-term structural changes to tax policy.

Esimees Lauri Hussar
15:14:58
AI Summary

Chairman Lauri Hussar gave thanks, concluded the first question, and asked Anastassia Kovalenko-Kõlvart to begin with the procedural question so that we could also reach the tenth question.

15:15:25
AI Summary

Anastassia Kovalenko-Kõlvart claims that she presented her question and has submitted draft legislation regarding the bank tax and the digital tax, emphasizing that the sugar tax will not work without other measures. Furthermore, the Centre Party has always supported the funding of school sports and extracurricular activities, while the Reform Party only imposes new taxes.

Esimees Lauri Hussar
15:16:28
AI Summary

Chairman Lauri Hussar stated that this question could not in any way be deemed procedural, and he drew attention to the fact that Rain Epler's question relates to the protocol for conducting the session.

Rain Epler
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:16:47
AI Summary

The speaker recalls that EKRE submitted the bank tax bill in May or June of last year, and notes that it might be stalled in the board, because the Prime Minister has stated that the bill has been put on hold.

Peaminister Kaja Kallas
15:17:08
AI Summary

Kaja Kallas commented on the Centre Party's draft bill.

Rain Epler
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:17:11
AI Summary

The Center Party's draft bill was discussed, and a request was made to forward it to the relevant person. It was hoped that it would be suitable and help move the bank tax issue forward, especially since the bill has already been submitted for a year.

Esimees Lauri Hussar
15:17:18
AI Summary

Speaker Lauri Hussar thanks his esteemed colleague and asks Mart Helme a question regarding the procedure for conducting the session.

Mart Helme
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioon
15:17:21
AI Summary

Mart Helme pointed out that there is much debate regarding how a questioner can call a respondent to order and receive an answer when the respondent avoids the question and employs demagogic tactics.

Esimees Lauri Hussar
15:17:50
AI Summary

Chairman Lauri Hussar stated that it is always possible to ask again, but the presiding officer of the session will not intervene as long as the questioner and the respondent stay on topic, and this rule applies to all presiding officers.