Agenda Profile: Aivar Sõerd
Draft resolution "Proposal to the Republic of Estonia's Government regarding the introduction of a temporary solidarity tax on the banking sector" (487 OE) – first reading
2024-10-22
15th Riigikogu, 4th session, plenary session
Political Position
The political stance is one of strong opposition to the temporary solidarity tax on the banking sector (487 OE). This position is policy-driven, emphasizing that taxation based on temporary favorable market conditions is improper, and the draft legislation is hopelessly late, given that the banking sector's favorable economic cycle has passed and Euribor is falling. Policymaking stresses the importance of maintaining stability and the confidence of foreign investors.
13 Speeches Analyzed
Topic Expertise
High level of expertise in the analysis of financial policy, taxation, and the banking sector. It utilizes technical terminology and specific data, for instance, by referencing the record level of corporate income tax receipts (accounting for 80% of the budget) and the significantly multiplied collections of banks' advance income tax. It supports its arguments with economic forecasts (such as the decline in Euribor) and assessments provided by foreign experts (like the chief analyst of Lithuania's SEB bank).
13 Speeches Analyzed
Rhetorical Style
The rhetorical style is analytical, formal, and corrective, focusing on logical and economic arguments. The tone is businesslike, often correcting the assumptions of those asking questions (e.g., regarding the timing of taxation) and emphasizing that taxation cannot be structured based on temporarily favorable economic conditions. It uses data and comparisons (the Lithuanian experience) to support its positions.
13 Speeches Analyzed
Activity Patterns
I am acting as the representative (rapporteur) of the Riigikogu Finance Committee during the debate on this draft bill. I refer to my participation in the committee session on September 17th, where the bill was briefly introduced. I also mention the regular discussions held with the Banking Association and the Bank of Estonia for the broader consideration of the situation in the financial sector.
13 Speeches Analyzed
Opposition Stance
Opposing the initiators of the draft bill on the grounds of insufficient political substance and preparation, it accuses them of failing to present the necessary analysis in the explanatory memorandum. It sharply criticizes the principle of temporary favorable economic conditions serving as the basis for taxation, labeling it an overreach and cautioning against the state's "tax experiments."
13 Speeches Analyzed
Collaboration Style
The style of cooperation is formal and procedural, operating within the framework of the Steering Committee. It notes that the Committee's decisions regarding placing the draft resolution on the plenary agenda and appointing a representative were reached by consensus. It clearly maintains procedural boundaries in its responses, referring only to matters that fell within the scope of the Committee's discussion.
13 Speeches Analyzed
Regional Focus
The focus is on international and regional comparison, involving a thorough analysis of Lithuania's bank tax experience and its negative impact on the attractiveness of foreign investors. It highlights the Estonian economy's close ties to the Scandinavian markets (Finland, Sweden) and the differences in the economic environment compared to Lithuania (for instance, the proportion of loans tied to Euribor).
13 Speeches Analyzed
Economic Views
Prefers a stable and predictable tax environment, warning that temporary tax experiments deter foreign investors who currently view Estonia as a favorable investment destination. It is emphasized that banks are already paying substantial advance income tax, which has led to record tax revenue collection. The conclusion is that the taxes are ultimately borne by the consumer.
13 Speeches Analyzed
Social Issues
Not enough data.
13 Speeches Analyzed
Legislative Focus
The primary legislative focus is opposing Riigikogu Draft Resolution 487 OE (the banking sector solidarity tax), highlighting its belated nature and inefficiency. Attention is drawn to the increase in corporate income tax revenue (advance income tax) as proof that banks are already adequately taxed.
13 Speeches Analyzed