Agenda Profile: Lauri Läänemets

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 platform is firmly value-based and economically responsible, centered on reducing the VAT on foodstuffs (from 24% to 9%) as a measure that is both socially equitable and stimulates the economy. This draft bill is put forward as an alternative to the government's budget, which is deemed unreasonable, irresponsible, and preferential toward the wealthy. The speaker stresses the constitutional value of "justice" and the necessity of improving the public's ability to cope financially.

13 Speeches Analyzed
Topic Expertise
The speaker demonstrates expertise in VAT policy, food price inflation statistics (over 50%), and budget calculations, clearly differentiating between the direct cost of the tax reduction and the resulting impact on the state budget. A detailed overview is provided concerning the basic foodstuffs affected by the change, along with references to international examples (Latvia, Finland, Sweden) and prior ministry analyses.

13 Speeches Analyzed
Rhetorical Style
The rhetorical style is sharply critical and emotionally charged, emphasizing social injustice and government incompetence. Both personal stories from low-income individuals and detailed budget and tax figures are utilized to create a stark contrast. The tone is accusatory toward the government, citing panic and irresponsibility.

13 Speeches Analyzed
Activity Patterns
These patterns of activity center on the previous government period, during which the Social Democrats initiated an analysis into reducing food prices (September 2024) and met with retailers (November 2024). Also noted is support for a demonstration backing the draft bill held in front of the Riigikogu (Parliament), as well as previous efforts within the government to lower food prices.

13 Speeches Analyzed
Opposition Stance
The main confrontation is directed at the Reform Party and the government (Kristen Michal, Jürgen Ligi), who are accused of incompetent financial policy, distributing borrowed funds to the wealthy, and disregarding the value of constitutional justice. The criticism is intense, referencing the government's "chaos" and "panic," and further accusing them of punishing the opposition and the public.

13 Speeches Analyzed
Collaboration Style
The speaker highlights the broad public support (professional associations, 100,000 signatures) for lowering the value-added tax, noting that they are isolated from the government on this issue. Willingness is expressed to consider a temporary tax reduction (as proposed by Toomas Luman), and the government is urged to let others implement this if they are unable to do so themselves.

13 Speeches Analyzed
Regional Focus
The focus is on the national economy and international competitiveness, stressing the need to strengthen the Estonian food production and agricultural sector, which accounts for 13% of exports. Examples from Finland and Latvia are also referenced, and the financial difficulties faced by a family from Pärnu are highlighted.

13 Speeches Analyzed
Economic Views
Economic perspectives support a reduction in the regressive tax (Value Added Tax, or VAT) to improve the financial well-being of lower-income individuals and stimulate domestic demand. They oppose using borrowed money for handouts to the wealthy, deeming it an irresponsible fiscal policy that increases the national debt burden and interest expenses. They also support strengthening the competitiveness of the agricultural sector through a lower VAT rate.

13 Speeches Analyzed
Social Issues
In social matters, the focus is placed on livelihood challenges and socio-economic fairness, stressing that VAT disproportionately burdens pensioners and families with children. Examples are highlighted of families who cannot afford healthy food or even basic clothing. Furthermore, it is emphasized that the state must ensure that people can maintain a dignified standard of living without needing to rely on state benefits.

13 Speeches Analyzed
Legislative Focus
The legislative focus is on the Draft Act Amending the Value-Added Tax Act (661 SE), which proposes lowering the VAT on basic foodstuffs from 24% to 9%. The speaker is a strong initiator and supporter of the bill, offering it as an alternative for a more caring and economically conscious state budget.

13 Speeches Analyzed