Riigikogu did not support the reduction of the VAT rate on food products

The Draft Resolution of the Riigikogu “Making a proposal to the Government of the Republic to lower the VAT on food to 9 per cent” (579 OE), submitted by the Estonian Centre Party Parliamentary Group, proposed to lower the VAT on the main food groups (vegetables, cereals, dairy, meat, and fish products) to 9 per cent. The purpose of the draft Resolution was to lower the price of food products in the context of the general price increase.

Vadim Belobrovtsev from the Estonian Centre Party Group and Tanel Kiik from the Social Democratic Party Group took the floor during the debate.

15 members of the Riigikogu voted in favour of the draft Resolution. The draft Resolution dropped from the legislative proceedings as a majority vote of the members of the Riigikogu was needed for the Resolution to be passed.

The aim of the Bill on Amendments to the Value-Added Tax Act (593 SE), initiated by the Estonian Conservative People’s Party Group, was to lower the VAT rate on foodstuffs to 5 per cent in order to curb the increase in foodstuff prices. The VAT rate on foodstuffs, including potatoes, fruit and vegetables, is 22 per cent in the current Act.

Arvo Aller from the Estonian Conservative People’s Party Group took the floor during the debate.

The Finance Committee as the lead committee moved to reject the Bill. 44 members of the Riigikogu voted in favour of the motion and 14 voted against. The Bill was dropped from the legislative proceedings.

Verbatim record of the sitting (in Estonian)

Video recording will be available on the Riigikogu YouTube channel.

Riigikogu Press Service
Maiki Vaikla
+372 631 6456, +372 5666 9508
maiki.vaikla@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: Riigikogu did not support the reduction of the VAT rate on food products

Source: Parliament of Estonia