Agenda Profile: Diana Ingerainen
First Reading of the Draft Act on Amendments to the Value-Added Tax Act (661 SE)
2025-10-09
The 15th Riigikogu, 6th Session, Plenary Sitting
Political Position
The political focus is currently on the draft amendment to the VAT Act (661 SE), the rejection of which is strongly supported, based on the decision made by the majority of the Finance Committee. The primary arguments for rejection cite the state budget deficit (approximately 200 million) and the lack of assurance that the tax reduction will actually reach the end consumer. Targeted direct subsidies are preferred over general tax cuts, as this represents a superior solution both politically and in terms of overall effectiveness.
12 Speeches Analyzed
Topic Expertise
The speaker demonstrates expertise in the field of tax policy and budget analysis, highlighting specific financial impacts (a 200 million deficit) and referencing analyses conducted by the Ministry of Finance and the Praxis think tank. Particular emphasis is placed on the effect of VAT reduction on final prices, using examples from other countries (Latvia, Finland) where no long-term impact on pricing was observed. The speaker is capable of explaining the price formation chain and the proportion of VAT within that chain.
12 Speeches Analyzed
Rhetorical Style
The style is formal, procedural, and analytical, focusing on the neutral presentation of the Finance Committee's work and voting results. The speaker employs logical and data-driven arguments, highlighting the risk of a budget deficit and the ultimate inefficiency of tax cuts. Emotionally, concern is expressed for single parents and pensioners, but the solutions are strictly rational (direct subsidies).
12 Speeches Analyzed
Activity Patterns
The speaker’s activity pattern centers on work within the Riigikogu (Parliament) committees, presenting the results of the Finance Committee session (September 22) and representing the committee at the plenary sitting. The speaker also mentioned participating in the State Budget Control Committee, where meetings were held with food producers and retailers. The speaker’s role is primarily that of a procedural rapporteur and the representative of the lead committee.
12 Speeches Analyzed
Opposition Stance
The opposition is directed at the draft bill amending the Value Added Tax Act, criticizing it for political inefficiency and the deficit it would create for the state budget. The criticism is aimed at the measure itself, not the individuals, but the voting results in the committee are highlighted, where Aivar Kokk, Andrei Korobeinik, and Riina Sikkut voted against. The possibility of compromise is not mentioned, as the rejection of the draft bill is considered necessary.
12 Speeches Analyzed
Collaboration Style
The collaborative style is open to the inclusion of experts, involving Ministry of Finance officials (Aet Külasalu and Madis Aben) in the commission's work to present analyses. It is noted that the commission reached a consensus on two decisions, indicating a willingness to cooperate on procedural issues.
12 Speeches Analyzed
Regional Focus
The focus is at the national level (state budget, tax policy) and international, citing the experiences of other countries (Latvia, Finland) regarding VAT reduction. A specific regional focus is lacking in Estonia.
12 Speeches Analyzed
Economic Views
Economic perspectives emphasize fiscal discipline and are skeptical of broad tax cuts that generate budget deficits without a guaranteed impact on prices. Support is given to assisting economically vulnerable groups through direct benefits, rather than via market intervention (e.g., price setting). Reference is made to analyses showing the lack of long-term impact from tax reductions.
12 Speeches Analyzed
Social Issues
The speaker raises social concerns regarding single parents and pensioners living alone, noting that they are the groups most severely impacted by the recent tax hikes. Direct support payments are favored as a solution to these social issues, given that a broad tax reduction would fail to deliver the required relief specifically to those who need assistance the most.
12 Speeches Analyzed
Legislative Focus
The legislative focus is on the draft bill amending the Value-Added Tax Act (661 SE), regarding which the speaker is acting as a representative of the leading committee. The main goal is to reject the bill, based on arguments concerning the budget deficit and the ineffectiveness of the measure. Other legislative initiatives, such as the topic of Toomas Luman or the boatswains, were left unaddressed in the committee.
12 Speeches Analyzed