Agenda Profile: Marek Reinaas
First reading of the Draft Resolution of the Riigikogu "Making a Proposal to the Government of the Republic for Lowering the Value-Added Tax on Domestic Fruits and Vegetables to 5 Percent" (406 OE)
2024-05-29
15th Riigikogu, 3rd session, plenary session
Political Position
The political position is primarily procedural and neutral, focusing on the summary of the Finance Committee's discussion concerning the draft legislation to lower the VAT on domestic fruits and vegetables. He/She emphasizes the intellectual substance of the debate and the necessity of considering socio-economic impacts. Although he/she highlights opposing viewpoints, he/she refrains from expressing a personal stance, stating that he/she will keep his/her opinion private.
10 Speeches Analyzed
Topic Expertise
The expert assessment concerns the legislative procedure and the specifics of tax policy, particularly in the field of VAT derogations. The expert provides specific and up-to-date information regarding changes to the Latvian VAT regime (the 5% rate was abolished, the current rate is 12%), thereby clarifying the ambiguity that arose within the commission. Furthermore, the expert is knowledgeable about the general philosophy of economics and the fundamental principles governing the operation of a market economy.
10 Speeches Analyzed
Rhetorical Style
The style of the address is formal, procedural, and descriptive, focusing on a neutral summary of the commission's deliberation. The speaker employs analytical language, characterizing the debate as "intellectually interesting" and "substantive," and emphasizes the presentation of facts rather than emotional appeals. Although the speaker notes that the discussion was emotional, their own tone remains restrained and appropriate for the role of the rapporteur.
10 Speeches Analyzed
Activity Patterns
The pattern of activity is related to representing the steering committee in the Riigikogu plenary session, providing an overview of the Finance Committee meeting (May 13) and its decisions. He/She fulfills the role of rapporteur, ensuring the procedural progress of the draft bill and answering questions regarding the substance of the committee's discussion. He/She also refers to previous instances when the Finance Committee has debated similar draft bills.
10 Speeches Analyzed
Opposition Stance
While not expressing personal opposition, he accurately relays criticism concerning the draft bill, specifically focusing on the absence of impact assessments and budgetary concerns. He highlights Jürgen Ligi's critique that any reduction in VAT must take into account the budget and the socio-economic effects. He also conveys the criticism that in a capitalist market economy, the price is determined by the balance between supply and demand, not by the tax itself.
10 Speeches Analyzed
Collaboration Style
The style of cooperation is open and procedurally consensual, noting that the committee's decisions regarding placing the draft bill on the plenary agenda and appointing a representative were consensual. He emphasizes the existence of intellectual debate and a partial consensus between Korobeinik and Ligi concerning the observation of poor people's purchasing behavior. He also refers to the possibility that other committees (e.g., the National Defense Committee, the Rural Affairs Committee) were consulted during earlier discussions.
10 Speeches Analyzed
Regional Focus
The focus is on national tax policy and international comparison, particularly concerning the VAT rates applied to fruits and vegetables in Latvia and Lithuania. It highlights the Latvian government's debates surrounding the termination of the preferential rate (5%) and the introduction of a new rate (12%). Local or regional topics in Estonia are not addressed, although food security is mentioned as being within the scope of the Rural Affairs Committee's activities.
10 Speeches Analyzed
Economic Views
Economic viewpoints are presented through other arguments, emphasizing the necessity of considering the budget and the socio-economic impact when establishing VAT exemptions. He highlights the market economy principle that price is determined by the relationship between supply and demand, not by individual taxes. He also conveys positions that stress fiscal discipline and the avoidance of budgetary expenditures resulting from tax concessions.
10 Speeches Analyzed
Social Issues
The social issue concerns the consumption of fruits and vegetables by poorer people and their purchasing behavior due to high prices. He/She references the debate over whether the poor buy fewer fruits and vegetables because of their high cost or whether they simply pay less VAT. Health aspects are mentioned in the context of the Latvian example, where a 5% reduced rate had a beneficial effect on health and consumption.
10 Speeches Analyzed
Legislative Focus
The legislative focus is currently on Draft Bill 406 OE, which addresses lowering the value-added tax (VAT) on domestic fruits and vegetables to 5%. The Speaker is a representative of the leading committee (the Finance Committee), responsible for the procedural advancement of the bill and communicating the substance of the debate to the plenary session. He/She stresses the need to incorporate socio-economic impact assessments during the processing of the draft bill.
10 Speeches Analyzed