Agenda Profile: Arvo Aller

Draft Law Amending the Value Added Tax Act (593 SE) – First Reading

2025-04-17

15th Estonian Parliament, 5th session, plenary session

Political Position
The political focus is on cutting the VAT on foodstuffs down to 5%. This is intended to ease the price pressure on consumers and provide support for domestic production. This stance is heavily policy-driven, and it criticizes the government's overall policy of raising taxes (VAT, excise duties, income tax) as being hostile to the public. Reducing the VAT is viewed as the absolute minimum step the ruling coalition should take for the good of the people.

2 Speeches Analyzed
Topic Expertise
The speakers demonstrate expertise in VAT regulations, citing both EU directives and national specificities (such as the 0% and 22% rates). Concrete examples from other countries are utilized—for instance, Latvia's 5% pilot project for fruits and vegetables—to prove the positive effect of these concessions on production and consumer prices. Furthermore, the discussion covers the food chain and consumer behavior within the context of price sensitivity.

2 Speeches Analyzed
Rhetorical Style
The style is predominantly critical and insistent, aimed particularly at the coalition, using sharp expressions such as "anti-people" and "steamroller." It employs both logical arguments (international comparisons, the example of Latvia) and emotional appeals (the consumer who must pay the price just to fill their stomach). The tone is occasionally confrontational, accusing the governing party of arrogance and ignoring the opposition's initiatives.

2 Speeches Analyzed
Activity Patterns
Not enough data

2 Speeches Analyzed
Opposition Stance
The main criticism is leveled against the ruling coalition, which is accused of pursuing an anti-public tax policy and ignoring worthwhile initiatives proposed by the opposition. The coalition's arguments against VAT exemptions are unequivocally branded as hostile to the public, and critics claim the government is essentially calling the 24 countries that utilize such concessions stupid. The criticism is primarily based on policy and procedural grounds.

2 Speeches Analyzed
Collaboration Style
The speaker highlighted the cooperation within the opposition, noting that the Centre Party, EKRE, and Isamaa all support reducing the value-added tax (VAT). The coalition is being offered assistance and support to implement this initiative, demonstrating a willingness to achieve a broader consensus on the matter of tax reduction.

2 Speeches Analyzed
Regional Focus
The clear focus is on revitalizing rural areas and rural life, emphasizing that a 5% VAT rate would help bring small businesses into the spotlight. Furthermore, supporting rural life is also linked to strengthening national security.

2 Speeches Analyzed
Economic Views
We strongly support lowering taxes ( especially the VAT on foodstuffs) to boost consumer purchasing power and support domestic production. We oppose the current tax policy, which drives prices higher and leaves people with less disposable income. Reducing the VAT is viewed as a measure that provides certainty for producers and increases the proportion of domestic goods available on store shelves.

2 Speeches Analyzed
Social Issues
The focus is on social security and meeting basic needs, stressing that consumers are forced to prioritize price because tax hikes have drained their wallets. Lowering the VAT is presented as a measure that will help people afford to eat properly and get on with their lives.

2 Speeches Analyzed
Legislative Focus
The primary legislative priority is the amendment of the Value Added Tax Act (Bill 593 SE), aimed at introducing a reduced VAT rate of 5% for food items. In addition to food, there is mention of extending the 5% rate to include medicines and books. The speaker is a strong proponent and driver of this initiative, and is even prepared to compromise regarding the VAT applied to mainstream newspapers.

2 Speeches Analyzed