Inquiry regarding the conflict between the motor vehicle tax and the Constitution and European Union law (No. 623)

Session: 15th Riigikogu, 3rd session, plenary session

Date: 2024-04-29 20:52

Total Speeches: 29

Membership: 15

Agenda Duration: 32m

AI Summaries: 29/29 Speeches (100.0%)

Analysis: Structured Analysis

Politicians Speaking Time

Politicians

Analysis

Summary

This agenda item addresses the inquiry submitted on March 18, 2024, by Riigikogu members Anastassia Kovalenko-Kõlvart, Aleksei Jevgrafov, Aleksandr Tšaplõgin, Vadim Belobrovtsev, and Andrei Korobeinik concerning the conflict of the motor vehicle tax with the Constitution and European Union law. The purpose of Inquiry No. 623 was to clarify whether the substance and implementation of the car tax are in compliance with certain provisions of the Estonian Constitution and whether the tax highlights a conflict with European Union law. Additionally, analyses and explanations regarding social exceptions, support measures, and administrative burden were requested from the government. The session also included a discussion on possible solutions, including the handling of support and exceptions intended for large families and people with disabilities, and the assessment of the impact of registration fees and fines.

The second part of the agenda concerns the response to the inquiry, addressing the existing replies and the positions of the Ministry of Finance and the government, as well as an inclusion-based dialogue, and discusses what the actual decisions or conclusions are. Based on the course of the proceedings, observations concerning common interests could be noted: both constitutional and EU law-related issues, possible solutions for social exceptions and support measures, as well as the balancing of administrative burden and economic costs. Finally, topics of criticism were also raised, such as the doubling or quadrupling of parking fines, and the general objective of contributing to open and inclusive engagement and achieving concrete results in connection with the car tax discussion.

Decisions Made 1
Collective Decision

No binding decisions were made concerning the agenda item. The substantive response to the inquiry and the discussion did take place, but concrete decisions were either lacking or were not formalized.

Most Active Speaker
Anastassia Kovalenko-Kõlvart
Anastassia Kovalenko-Kõlvart

Eesti Keskerakonna fraktsioon

Anastassia Kovalenko-Kõlvart was the most active speaker during the proceedings; she presented the text of the interpellation and maintained the leading position throughout the discussion's progression, presenting questions, making direct appeals, and steering the debate within the limited time frame. Positionally, she can be classified as "other" (a representative of a specific party not belonging to either the right-wing or left-wing bloc). She was the main initiator and coordinator of the engagement negotiations, wielding significant influence over the course of the debate.

Aseesimees Toomas Kivimägi
20:52:02
AI Summary

For the next item on the agenda, we will discuss the interpellation concerning the conflict of the motor vehicle tax with the Constitution and European Union law (Interpellation No. 623), and we invite Riigikogu member Anastassia Kovalenko-Kõlvart to present the report.

20:52:33
AI Summary

Anastassia Kovalenko-Kõlvart stresses that the proposed car tax bill fails to provide adequate exemptions for people with disabilities and large families. She warns that the bill may violate the constitution by increasing the risk of poverty among vulnerable groups, and she is presenting specific questions to the prime minister, emphasizing the necessity of implementing additional support measures and special solutions.

Aseesimees Toomas Kivimägi
20:57:16
AI Summary

Deputy Speaker Toomas Kivimägi offered his thanks and promised slightly less formal language to lighten the mood, after which he posed a procedural question to Andrei Korobeinik.

Andrei Korobeinik
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioon
20:57:22
AI Summary

Andrei Korobeinik stressed that a high-quality debate is very important, and he sought to exercise his procedural right, asking why the Prime Minister did not deliver the closing statement on the previous item, suggesting this was due to internal tensions within the Reform Party or some other reason.

Aseesimees Toomas Kivimägi
20:58:02
AI Summary

Toomas Kivimägi stated that he had information that the Prime Minister did not wish for this, that he had not violated the rules of procedure, explained Anastassia's right of priority, and asked the Riigikogu to give the floor to the honorable Prime Minister Kaja Kallas.

Peaminister Kaja Kallas
20:58:31
AI Summary

Prime Minister Kaja Kallas apologized for the confusion caused by the inquiries being identical, and retrieved the correct inquiry document from the podium.

Aseesimees Toomas Kivimägi
20:58:41
AI Summary

It's not surprising, because they are so similar that they can be mistaken for one another.

Peaminister Kaja Kallas
20:58:49
AI Summary

Prime Minister Kaja Kallas explains that the motor vehicle tax has been designed to take into account the financial capacity of households and the needs of people with disabilities, and primarily affects those who own a car. However, more than half of people with disabilities do not own a car, and a car tax exemption for socially vulnerable groups is not a simple solution. Therefore, direct subsidies will be increased, and a bill to raise social benefits is currently in the works.

Aseesimees Toomas Kivimägi
21:03:20
AI Summary

The address began by extending great thanks to the Prime Minister and the questioners. It was noted that questions were forthcoming, and Andrei Korobeinik was then invited to speak.

Andrei Korobeinik
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioon
21:03:23
AI Summary

Andrei Korobeinik thanks the Honorable Presiding Officer of the session, refers to Ansip's interview, and laughs together with Lauri Laati.

Peaminister Kaja Kallas
21:03:33
AI Summary

Kaja Kallas says that it’s great when the audience laughs along too, and she laughs herself.

Andrei Korobeinik
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioon
21:03:36
AI Summary

The speech centers around the desire to share positive ideas.

Aseesimees Toomas Kivimägi
21:03:37
AI Summary

Deputy Chairman Toomas Kivimägi said that good humor is part of the whole thing.

Andrei Korobeinik
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioon
21:03:40
AI Summary

Andrus Ansip criticizes the Reform Party's tax increases and emphasizes the importance of inclusion and trust, stating that a comprehensive plan with broad national consensus must be developed to improve the country’s finances.

Peaminister Kaja Kallas
21:04:34
AI Summary

Prime Minister Kaja Kallas stresses that the state budget strategy involves no easy decisions, noting that support for tax hikes is growing according to surveys, and is now greater than it was in December, while the Centre Party faction is thoroughly analyzing the interviews.

Aseesimees Toomas Kivimägi
21:05:14
AI Summary

Deputy Chairman Toomas Kivimägi calls upon Lauri Laats.

Lauri Laats
Lauri Laats
Profiling Eesti Keskerakonna fraktsioon
21:05:16
AI Summary

Lauri Laats criticizes the idea of the car tax, calling it a plan that is long, dragging on under discussion, and frankly, looks like a joke. He points out that the projected sum has ballooned from 120 million to 236 million, and asks when the government will finally present precise calculations and concrete taxable options (such as the coefficient, registration fee, and age distribution), along with a new ministerial announcement.

Peaminister Kaja Kallas
21:06:18
AI Summary

Prime Minister Kaja Kallas stressed that the necessary inclusion had occurred, and everyone had been given the opportunity to express their views. She added that the draft bill is currently before the Finance Committee, and any subsequent procedural decisions must be sought from the committee itself.

Aseesimees Toomas Kivimägi
21:06:57
AI Summary

Anastassia Kovalenko-Kõlvart is invited to speak.

21:06:59
AI Summary

Anastassia Kovalenko-Kõlvart criticizes that the draft legislation before the Riigikogu serves solely to meet budget requirements, and that public consultation is merely perfunctory. She notes that proposed amendments are not being supported, and views the increase in the car tax and fines as nothing more than a revenue grab, implemented without any analysis of their impact on road safety and driving culture.

Peaminister Kaja Kallas
21:08:11
AI Summary

Kaja Kallas emphasized that she does not comment on the work of the Riigikogu, and that costs related to fines should not be borne by taxpayers, but should instead fall upon the people who violate the law.

Aseesimees Toomas Kivimägi
21:08:57
AI Summary

The speaker asks Siim Pohlak to come forward.

Siim Pohlak
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioon
21:08:59
AI Summary

Siim Pohlak criticizes the fact that the revenue generated by the fuel excise tax is not directed towards road repair as promised, and furthermore, despite the motor vehicle tax, road funding decreases every year, roads are deteriorating, and people are spending increasingly more on spare parts. Following endless consultation, he asks what three or four positive outcomes this process has actually yielded for the Estonian people.

Peaminister Kaja Kallas
21:09:59
AI Summary

Prime Minister Kaja Kallas stated that covering the rising state expenditures requires a greater contribution from taxpayers, including the introduction of a car tax. Furthermore, the registration fee for everyone will be a smaller amount than originally planned, and an age component will be implemented for the cars of legal entities, which is expected to reduce business costs in rural regions.

Aseesimees Toomas Kivimägi
21:11:18
AI Summary

Toomas Kivimägi thanked [everyone], said that there were no further questions, opened the discussions, and invited Anastassia Kovalenko-Kõlvart, who requested three additional minutes.

21:11:20
AI Summary

Anastassia Kovalenko-Kõlvart asserts that the proposed car tax bill is being introduced at the most inopportune time for the government. She argues that it will increase the cost of living, exacerbate regional disparities, and lead to a reduction in road investments and fines, all while jeopardizing the rights of individuals involved in sports and culture, as well as people with special needs. Consequently, she calls for the bill to be withdrawn.

Aseesimees Toomas Kivimägi
21:19:38
AI Summary

The Deputy Chairman thanks [the previous speaker] and calls upon his colleague, Lauri Laats, to deliver his address.

Lauri Laats
Lauri Laats
Profiling Eesti Keskerakonna fraktsioon
21:19:50
AI Summary

Lauri Laats criticized the motor vehicle tax plan and the government’s approach, calling for funding to be found through a bank tax and for the income tax reform to be dropped. He emphasized that new excise duties will be imposed on May 1st, and that a bank tax would be a realistic alternative.

Aseesimees Toomas Kivimägi
21:24:53
AI Summary

Deputy Speaker Toomas Kivimägi thanks all colleagues, closes the debate, concludes the proceedings on this agenda item, and thanks the Prime Minister separately.