Agenda Profile: Lauri Laats
First reading of the draft resolution of the Riigikogu, "Submitting a proposal to the Republic of Estonia's Government to reduce the VAT on foodstuffs to 9 percent" (579 OE)
2025-04-17
15th Estonian Parliament, 5th session, plenary session
Political Position
The Centre Party faction advocates for lowering the VAT on food products (to 9%) and considers this a priority for improving food prices and living standards, particularly for the lower-income population. Simultaneously, they stress that the elimination of the tax hump is not supported; meaning the overall structure of the tax system will not be drastically changed. The position is strongly policy-oriented and pragmatic, and critical of the government's tax policy.
8 Speeches Analyzed
Topic Expertise
It uses analyses from the Institute of Economic Research and inflation indicators (general inflation ~6%, food price forecasts 7–8%), and presents the experiences of European countries regarding differentiated VAT rates on foodstuffs (Belgium, Austria, Finland, Hungary, Italy, Malta, Poland). It cites specific examples and data to support the necessity of the draft bill and demonstrate broader regional practice.
8 Speeches Analyzed
Rhetorical Style
The tone is closed off, argumentative, and somewhat combative; it utilizes statistics-based evidence and emotionally charged figures (e.g., 300,000 people, poverty) along with rhetorical devices. The text alternates between the presentation of facts and a strong moral appeal to the audience, often utilizing personal experience or a comparison of experiences.
8 Speeches Analyzed
Activity Patterns
He delivers multiple speeches on the same topic in the Riigikogu chamber over the course of the day; he cites studies from the Institute of Economic Research and references previous debates; he asks his faction and colleagues to vote in favor of the draft bill. He regularly promotes the discussion of these same issues and points out that this is the first reading.
8 Speeches Analyzed
Opposition Stance
Criticism is directed at the government's tax policy and its capacity to fight inflation. Anger is expressed over the government's decisions, emphasizing that 300,000 people are suffering, and taxes should be used to assist the public, rather than expanding the scope of taxation. If the abolition of a specific measure, such as the 'tax hump,' is suggested, the opposition deems it unacceptable. The priority remains lowering the VAT on foodstuffs, not shifting to a fundamentally different tax regime.
8 Speeches Analyzed
Collaboration Style
Members of the coalition and the Riigikogu are called upon to vote in favor of the bill, demonstrating a willingness to cooperate from the opposition's point of view, but simultaneously, there is a strong insistence on their own faction's position. In several instances, the need for a broader consensus has been stressed, but cooperation is limited by a non-substantive agreement.
8 Speeches Analyzed
Regional Focus
Primarily focusing on the national level, but reference is made to the experiences of the City of Tallinn and Mustamäe, along with the practices of the Tallinn City Government. Examples from Tallinn are provided concerning social services and residents' ability to cope, and the discussion addresses the connection between state policy and the urban landscape.
8 Speeches Analyzed
Economic Views
Lowering the VAT on foodstuffs (to 9%) is the primary economic policy instrument; general changes to the tax structure and increasing the overall tax burden are opposed; emphasis is placed on combating inflation and protecting the purchasing power of the population. Strongly worded opinions were expressed regarding the proportion of income taxes versus consumption taxes, and the necessity of keeping the tax curve (or 'tax hump') unchanged when implementing the food exception. A targeted reduction in the price of the food basket is preferred over a broader tax review.
8 Speeches Analyzed
Social Issues
The issues of poverty and the cost of living are emphasized: rising prices have exacerbated inequality, and 300,000 people could soon fall into poverty. Lowering the cost of the food basket and guaranteeing quality are priorities. The role of social benefits and municipal mechanisms in helping people cope is also mentioned.
8 Speeches Analyzed
Legislative Focus
The main objective is the first reading of Draft Law 579 OE, the substance of which is the reduction of VAT on foodstuffs for basic food groups (root and leafy vegetables, milk, meat, and grains). Emphasis is placed on the necessity of ensuring the legal and budgetary synchronization of this reduction, and a call is made to vote in favor; the discussion centers on the tax amendments and their effect on prices.
8 Speeches Analyzed