Pension Taxation
Session: 15th Riigikogu, 3rd sitting, information briefing
Date: 2024-04-03 16:29
Participating Politicians:
Total Speeches: 12
Membership: 15
Agenda Duration: 13m
AI Summaries: 12/12 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The discussion of the seventh question centered on the taxation of pensions and whether taxing the average pension is justified and consistent with pre-election promises. The questioner, Riigikogu member Aleksandr Tšaplõgin, addressed Prime Minister Kaja Kallas, pointing out that before the elections, there was a promise not to tax the average pension. Currently, certain tax measures have been implemented, which would take assets from elderly pensioners, increasing their tax liability by approximately 130 euros annually. It was stressed that pensioners' income is affected by both taxation and changes in the cost of living. The question was raised whether the planned taxation is fair and if it impacts private means of subsistence. Furthermore, the general debate highlighted the connection between the coalition's promises and its actual actions, and what kind of impact assessments are required by the budgetary conditions. The proceedings were briefly interrupted when Anastassia Kovalenko-Kõlvart raised a procedural question, after which the session continued with answers and comments.
Decisions Made 1
The government decided to freeze the planned further increase of the income tax exemption for the average pension and to continue maintaining the current standardized framework for pension taxation, taking into account the budgetary situation and demographic trends.
Most Active Speaker
The most active speaker was Aleksandr Tšaplõgin (Member of the Riigikogu). His position: other (does not clearly show a left-wing or right-wing coalition affiliation based on the symbolic designation of the office).
Esimees Lauri Hussar
AI Summary
The Chairman announces that we are moving on to the seventh question, which is being posed by Riigikogu member Aleksandr Tšaplõgin to Prime Minister Kaja Kallas, concerning the taxation of pensions.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He accuses the government of breaking its promises and claims that there are plans to tax the average pension and take approximately 130 euros per year from the elderly, a situation illustrated by the elderly woman who begs daily on Toompea.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas emphasizes that pensions were taxed in 2016 during the Centre Party's tenure, but our government made the average pension income tax-free and increased the pension amounts, which boosted the average pension and purchasing power. Although the income tax exemption has been frozen due to budgetary constraints, it still remains higher for pensioners than for employees—776 euros for a pensioner versus 700 euros for an employee.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanks [the previous speaker/the room] and asks Aleksandr Tšaplõgin to pose a clarifying question.
Aleksandr Tšaplõgin
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He/She is posing a question to the minister as to why the taxation of pensions is considered fair and justified, while the Centre Party’s proposed taxation of banks’ excess profits is deemed unacceptable.
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas said that the average pension is income tax-free to correct an error made by the Centre Party, and although the tax burden is increasing due to an aging society, forecasts show that the average pension will grow in 2025–2026, and the tax on it will be lower than the tax on an employee's salary of the same size. Furthermore, the banks' voluntary contribution of over 500 million euros to the state budget will enable the financing of free healthcare, free education, and other state services.
Esimees Lauri Hussar
AI Summary
The Chairman thanked him and invited Vadim Belobrovtsev to ask a follow-up question.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Dear Prime Minister, the Ministry of Finance's analysis indicates that the average net pension by 2027 will only be around 870 euros, even though the Reform Party promised 1000 euros and the SDE promised 1200 euros. Therefore, I must ask: Does the current coalition plan to implement an extraordinary pension increase so that it reaches at least 1000 euros (or 1200 euros) by 2027, or will this simply remain an election promise?
Peaminister Kaja Kallas
AI Summary
Prime Minister Kaja Kallas emphasizes that making the pensions taxable under the previous government constituted concrete action. She confirms that the average pension has risen and will continue to rise in the future (2024–2028), and announces a plan to freeze the income tax exemption threshold for pensions—a threshold which is currently higher than the salary of a working person—until economic times improve, noting that the existing system can be reinstated if needed.
Esimees Lauri Hussar
AI Summary
The Chairman concludes the discussion of today's seventh item. Before moving on to the eighth item, Anastassia Kovalenko-Kõlvart has her hand raised and asks a question regarding the procedure for conducting the session.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart criticizes the Prime Minister for not answering questions and only talking about the Centre Party and its promises. She then asks whether the Centre Party or the Reform Party is currently in government, why the government is making the same decisions, and why no answers have been provided today.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar thanked [them], but said that it could not be treated as a procedural question.