ESTONIA

The Riigikogu concluded the first reading of Bills on amending motor vehicle tax

By
Helena-Reet Ennet
-

NordenBladet —

Four Bills passed the first reading

The Bill on Amendments to the Motor Vehicle Tax Act (694 SE), initiated by the Government, will establish in the Motor Vehicle Tax Act the basis for reducing the motor vehicle tax liability for children from this year onwards. Parents or adults with custody who have at least one 18-year-old child will automatically receive the reduction. For each child, the parent’s motor vehicle tax liability will be reduced by up to EUR 100 during a tax period, but not more than their total tax liability. If a child has several parents, each of whom also owns a vehicle, the reduction will be divided between them. The impact of the reduction in liability on taxpayers will be twofold. For 55,000 taxpayers, the applicable reduction will cover their entire motor vehicle tax liability for 2025. 97,000 taxpayers will receive a reduction, but their tax liability will exceed the amount of the reduction. The motor vehicle tax burden will be reduced by an average of over 50% for households with children, leaving families with a total of over EUR 16 million. According to the bill it will be provided that minibuses with more than seven seats will be taxed at the N-category motor vehicle tax rate. This will significantly reduce the motor vehicle tax rate for 8- or 9-seater vehicles registered in the passenger car category. The amendment will support the livelihoods of families with many children and people with disabilities who use minibuses.

Lauri Laats from the Centre Party Group, Helmen Kütt from the Social Democratic Party Group, Mart Helme from the Estonian Conservative People’s Party Group and Aivar Kokk from Isamaa Parliamentary Group took the floor during the debate.

The Bill on Amendments to the Motor Vehicle Tax Act  (677 SE), initiated by the Finance Committee, will create a basis for shortening the taxation period for motor vehicle tax . The right to shorten will arise in two cases. If a vehicle is deleted from the motor register, the tax period for the current year will be shortened until such time. Tax liability will also be suspended when a vehicle is temporarily deregistered for the period during which it is declared wanted by the Police and Border Guard Board due to theft. This will bring motor vehicle tax into line with the Constitution and ensure a proportionate restriction of the fundamental right to property.

Anti Allas from the Social Democratic Party Group, Anastassia Kovalenko-Kõlvart from the Centre Party Group and Aivar Kokk from Isamaa Parliamentary Group took the floor during the debate.

The aim of the Bill on Amendments to the Securities Market Act (690 SE), initiated by the Government, is to make the Estonian capital market more attractive to companies and to simplify the raising of capital in the case of small-scale securities issues. The Bill will raise the threshold for the obligation to draw up a prospectus from the current EUR 8 million to EUR 12 million which means that for public offerings of securities of up to EUR 12 million a simpler information document will be sufficient – ​​this will reduce costs and administrative burden for companies. Based on the target group of the issue, the issuer will be able decide for itself in which language it will be appropriate to prepare the prospectus – either in a language customary in the sphere of international finance or in a language accepted by the Financial Supervision Authority. If securities are offered in Estonia, the issuer will have an obligation to translate the summary of the prospectus into Estonian.  The bill will reduce the burden on investment service providers (banks, investment firms) by reducing various requirements – for example, simplification of the regulations related to the execution of client securities orders, including the elimination of certain reporting obligations and simplification of the reporting obligations for traders in certain derivative instruments.  The bill will allow the Financial Supervision Authority to impose fines for violations related to market abuse that will be proportional to the company’s turnover, ensuring a fairer penalty policy. The amendments set out in the Bill are based on European Union legislation and will contribute to the competitiveness of the Estonian capital market and better access to investment for companies.

The agreement outlined in the Bill on the Ratification of the Agreement between the Republic of Estonia and the Sultanate of Oman for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and its Protocol (692 SE), initiated by the Government , follows the OECD model agreement and regulates the division of taxation rights between the two countries. It will ensure equal treatment of persons and eliminate international double taxation. According to the agreement, the source state may not tax dividends at more than 10% and in certain cases, such as in the event of at least 20% ownership, dividends will be tax-free. No more than 5% may be withheld from interest, and in some cases, such as when the recipient of the interest is another country or a central bank, it will be tax-free. For royalties, the taxation limit will be 8%. The agreement also provides for an obligation of mutual exchange of information which will help prevent tax evasion and tax fraud. As at August, Estonia has concluded the agreements for the avoidance of double taxation with 63 countries.

Minister of the Interior Igor Taro and Minister of Education and Research Kristina Kallas replied to the interpellations of members of the Riigikogu.

Minister of the Interior Igor Taro replied to the interpellations concerning Ukrainian refugees, especially men of mobilization age (No. 794) and concerning the transfer of criminals from Sweden to Estonia (No. 803).

Ministry of Education and Research Kristina Kallas replied to the interpellations concerning inadequate public funding for school meals and the resulting inequality (No. 797), concerning students failing basic school final examinations (No. 800), concerning the organization of basic school final exams and continuation of studies in upper secondary school (No. 801) and concerning the budget surplus of the Ministry of Education and Research (No. 805).

Riina Sikkut and Lauri Läänemets took the floor during the open microphone.

The sitting ended at 10.20 p.m.

Verbatim record of the sitting (in Estonian)

Video recording of the sitting will be available to watch later on the Riigikogu YouTube channel.

Riigikogu Press Service
Gunnar Paal
+372 631 6351, +372 5190 2837
gunnar.paal@riigikogu.ee
Questions: press@riigikogu.ee

 

 

Link uudisele: The Riigikogu concluded the first reading of Bills on amending motor vehicle tax

Source: Parliament of Estonia

Chairs of the European Union Affairs Committees of the parliaments of Baltic Sea countries meet in Tallinn

By
Helena-Reet Ennet
-

NordenBladet —

“The impact of hybrid attacks and hostile influencing extends beyond national borders,” Chairman of the European Union Affairs Committee of the Riigikogu Peeter Tali said. “Countries in the Baltic Sea region that share the same values must stand together and protect their citizens, and our freedom of speech, democracy, and the rule of law. Hostile influence activities, interference in elections, and cyber-attacks are particularly dangerous. The European Union must inevitably invest significantly more money in security and military defence in its next long-term budget for 2028–2034, especially if we want to protect our free and prosperous way of life.”

In addition to Tali, Edmunds Cepurītis from the Parliament of Latvia, Ruslanas Baranovas from the Parliament of Lithuania, Agnieszka Pomaska and Jacek Włosowicz from the Parliament of Poland, Saara-Sofia Sirén from the Parliament of Finland, Erik Ottoson and Matilda Ernkrans from the Parliament of Sweden, Brigitte Klintskov Jerkel and Henrik Møller from the Parliament of Denmark, and Anton Hofreiter from the Parliament of Germany participate in the meeting of the Chairs of the European Union Affairs Committees.

Before the meeting, the Chairs of the European Union Affairs Committees visited the Mine Harbor Naval Base in Tallinn yesterday. They met with Commander of the Navy, Commodore Ivo Värk and discussed the situation in the Baltic Sea, the risks associated with the activities of Russia’s shadow fleet, and the protection of critical underwater infrastructure. The representatives of the national parliaments also visited the Rail Baltic Tallinn Ülemiste terminal together with Lauri Ulm, Technical Director of Rail Baltic Estonia.

Photos (Erik Peinar / Chancellery of the Riigikogu)

Riigikogu Press Service
Merilin Kruuse
+372 631 6592; +372 510 6179
merilin.kruuse@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: Chairs of the European Union Affairs Committees of the parliaments of Baltic Sea countries meet in Tallinn

Source: Parliament of Estonia

The Baltic Assembly Prize in Science went to political researcher Eva Piirimäe

By
Helena-Reet Ennet
-

NordenBladet —

The central figure of the monograph by Eva Piirimäe, Professor of Political Theory at The Johan Skytte Institute of Political Studies, is Johann Gottfried Herder who founded the modern disciplines of philosophical anthropology and cultural history, including research into popular culture. He is also remembered as a fierce critic of colonialism and imperialism. “Herder and Enlightenment Politics” provides a radically new interpretation of Herder’s political thought, situating his ideas in Enlightenment debates on modern patriotism, commerce and peace. Herder probed the foundations of modern liberty, community and peace, developing a distinctive understanding of human self-determination, natural sociability and modern patriotism as well as advocating a vision of Europe as a commercially and culturally interconnected community of peoples.

Piirimäe received her PhD from University of Cambridge in 2006. She has been a visiting scholar and associate professor at Harvard and Yale Universities. Piirimäe’s monograph “Herder and Enlightenment Politics” (Cambridge University Press, 2023) has received several international awards, most importantly the István Hont Book Prize.

The Baltic Assembly Prize in the Arts went to the Latvian conductor Kaspars Putniņš for the Latvian Radio Choir concert programme “The Dream Stream”. The Prize in Literature was awarded to the Lithuanian poet, essayist, critic, and translator Tomas Andrius Venclova for his latest collection of poetry “Už Onos ir Bernardinų”.

The Baltic Assembly Prize consists of a monetary prize, a certificate, and a statuette, which are presented every year at the Baltic Assembly session. This year, the Prize Awarding Ceremony will take place during the 44th Session of the Baltic Assembly on 13 November in Riga. The Jury was made up of artists and experts from Estonia, Latvia, and Lithuania: Svetlana Grigorjeva, Tüüne-Kristin Vaikla, Kadri Simm, Donata Mitaitė, Ramutė Rachlevičiūtė, Valdemaras Razumas, Ieva Kolmane, Dace Bluķe, Maija Kūle.

The Baltic Assembly has been awarding the Prizes in literature, the arts, and science since 1994. The aim of the prizes is to promote the development of these fields in the Baltic States.

Riigikogu Press Service
Maris Meiessaar
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maris.meiessaar@riigikogu.ee
Questions press@riigikogu.ee

 

Link uudisele: The Baltic Assembly Prize in Science went to political researcher Eva Piirimäe

Source: Parliament of Estonia

Military exercise Pikne ended with live fire training

By
Helena-Reet Ennet
-

NordenBladet —

Source: Estonian Defence Forces

Hussar acknowledged the wish of the people of Moldova to continue on the path towards the West

By
Helena-Reet Ennet
-

NordenBladet —

Hussar expressed his satisfaction with the results of the recent parliamentary elections in Moldova and acknowledged the firm desire of the people of Moldova to continue on the European path. “These elections were extremely important for Moldova. You have chosen your path, and the way you did it is a good example to everyone on how to resist Russia’s influence activities,” he said during a video meeting with his colleague.

Hussar confirmed that Estonia would continue to support Moldova both politically and practically. “You have our full support. We will support you on your path to the European Union as a current candidate country and a future member state,” he said, calling on Moldova to proceed with the reforms as quickly as possible. “We will be happy to share our accession experience. We will also continue our development and defence cooperation and support Moldova in the development of e-governance.”

Hussar also condemned Russia’s continued influence operations, spreading of misinformation, and repeated attempts to interfere in the elections in Moldova.

During their video meeting, the Speakers also discussed the situation in Transnistria and further cooperation in responding to threats from Russia.

Photos (Erik Peinar / Chancellery of the Riigikogu)

Riigikogu Press Service
Karin Kangro
+372 631 6356, +372 520 0323
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Questions: press@riigikogu.ee

Link uudisele: Hussar acknowledged the wish of the people of Moldova to continue on the path towards the West

Source: Parliament of Estonia

Members of the Riigikogu attend conference on economic governance: By buying gas and oil from Russia, we are financing hybrid activities against ourselves

By
Helena-Reet Ennet
-

NordenBladet —

In a session on security policy, Peeter Tali, Chairman of the European Union Affairs Committee, said that defense preparedness is a common interest of Europe. “We must stop buying natural gas and oil from Russia in order not to finance Russia’s war in Ukraine and hybrid activities against ourselves. We must stop the activities of the shadow fleet in the Baltic Sea, which also poses a major environmental threat, and use Russia’s frozen assets to compensate for war damages in Ukraine,” said Tali.

In a session on the EU’s position in the global economy, Tali stated that the European law-making process needs reform, including ensuring business-friendly rules, reducing reporting requirements, and making cross-border digital governance the norm. He stressed that Europe must be more independent and not depend on authoritarian regimes and third countries in its supply chains.

Annely Akkermann, Chair of the Finance Committee, spoke in a session that focused on European fiscal rules and their sustainability in the current geopolitical situation. “Well-designed and evidence-based fiscal rules are the cornerstone of the sustainability of the European Union,” said Akkermann. “Clear rules are the path to competitive growth, defence capability, and social cohesion. We need to keep the budget on track, but at the same time ensure flexibility to be ready to respond to the unexpected.”

Member of the Finance Committee Riina Sikkut raised the question of whether Member States are ready to accept that the European Defence Mechanism will shape the European Union’s defence policy. “Perhaps this would motivate Member States, more distant from Moscow, to contribute or participate more, but are we ready to shape defence policy this way?” Sikkut added, pointing out that any defence policy initiative must be subject to strict rules, similar to the European Stability Mechanism, which sets very clear criteria for the Member States.

Peeter Tali, Chair of the European Union Affairs Committee, Annely Akkermann, Chair of the Finance Committee, and Riina Sikkut, Member of the Finance Committee, at the Interparliamentary Conference on Stability, Economic Governance and Coordination (SECG) in Billund, Denmark. Photo: Nikolai Linares / IPC SECG

The purpose of the Inter-Parliamentary Conference on Stability, Economic Coordination, and Governance is to foster cooperation among parliaments within the framework of the Treaty on Stability, Coordination, and Governance in the Economic and Monetary Union. The Conference was established in 2013 at the Conference of Speakers of the European Union Parliaments (EUSC).

Riigikogu Press Service
Merilin Kruuse
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merilin.kruuse@riigikogu.ee
Inquiries: press@riigikogu.ee

Link uudisele: Members of the Riigikogu attend conference on economic governance: By buying gas and oil from Russia, we are financing hybrid activities against ourselves

Source: Parliament of Estonia

Students play Members of the European Parliament in the Riigikogu

By
Helena-Reet Ennet
-

NordenBladet —

The European Parliament simulation will take place in the session hall of the Riigikogu between 9.45 a.m. and 3.30 p.m. and can be followed online.

The young participants have been divided into six committees that have been discussing important topics for the society since last Friday. Every committee has drafted a resolution to resolve an issue they have previously identified, and will be defending it in front of the plenary assembly today.

The topics of resolutions include the inadequate transport infrastructure in Eastern Europe, EU-USA relations, hight cost of living and increased prices, development of defence industry, and new challenges to education posed by AI.

While drafting the resolutions, the students got to met local decision makers, who this year included MEP Urmas Paet, Minister of Social Affairs Karmen Joller, and Members of the Riigikogu Riina Solman, Raimond Kaljulaid, Eerik-Niiles Kross, and Martin Helme. The simulation was opened by the Minister of Energy and the Environment Andres Sutt.

For the first time, the programme includes a media team tasked with writing news articles, filming video stories, reporting on the work of the delegates, and organising a press conference. Nearly ten students get the chance to embody journalists from news outlets such as ERR, CNN, BBC, Politico, Fox News, or the Guardian.

The students who stand out the most will be able to take part in the Estonian delegations to the international and Baltic Sea countries’ model European Parliaments. The first international simulation with Estonian participants will take place soon, in March 2026 in Hungary.

European Parliament simulations have been organised in the session hall of the Riigikogu since 2023.

Photos (the photo gallery is updated throughout the day, author: Erik Peinar / Chancellery of the Riigikogu)

 

Riigikogu Press Service
Merje Meisalu
+372 631 6300, +372 529 9512
merje.meisalu@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: Students play Members of the European Parliament in the Riigikogu

Source: Parliament of Estonia

The Riigikogu amended the national positions in the interest of a speedy improvement of EU defence readiness

By
Helena-Reet Ennet
-

NordenBladet —

The Chairman of the EUAC Peeter Tali said that Estonia supported the main goals of the Omnibus, which consisted of reducing bureaucracy and speeding up the procurement proceedings in the defence sector. “We fully agree that for the development of the defence industry and increasing defence capability, the processes here should be simpler and faster, the regulatory burden lighter, and the EU law must be adapted to the needs of the defence readiness,” Tali elaborated.

The Committee decided to amend the positions after taking into account the proposals of the National Defence Committee. This prompted the clarification that the weapons banned by universally recognised international weapons conventions can remain outside the investment framework, but only if the Member State has joined the relevant convention. “This clarification is necessary because Estonia has cluster munition, which is why we have not joined the Oslo Convention and have also left the Ottawa Convention that bans anti-personnel mines,” Tali explained.

The Committee also added a new clause to the position, which says that Estonia supported a simpler, faster, and more transparent procedure for producing, exporting, and transiting munition in the European Union.

Estonia’s positions say that it is important to speed up investments into the technological and industrial basis of Estonia’s defence industry and to achieve the necessary production capacity to prevent war but be prepared for it. With all this, Estonia still continues to emphasise the promotion of cross-border cooperation, common development of the EU defence market based on competition, as well as respecting the interests of small and medium-sized enterprises.

At the sitting of the Committee, the positions of the Government on simplifying the EU Defence Readiness Omnibus (Omnibus V) were presented by the Minister of Defence Hanno Pevkur. The European Union Affairs Committee decided to approve the positions of the Government by consensus, taking also into account the opinion of the National Defence Committee.

Riigikogu Press Service
Merilin Kruuse
+372 631 6592; +372 510 6179
merilin.kruuse@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: The Riigikogu amended the national positions in the interest of a speedy improvement of EU defence readiness

Source: Parliament of Estonia

The Finance Committee started proceedings on the next year’s state budget Bill

By
Helena-Reet Ennet
-

NordenBladet —

According to Chair of the Finance Committee Annely Akkermann, the Committee plans to discuss the state budget by areas of government at several sittings next week.

“During the discussion, we want to get information from the ministers about the goals and costs of the programmes planned in the performance-based budget, what the desired outcome is, and how it will be measured,” Akkermann said. “The budget needs to be justified and transparent.”

The total volume of the state budget for 2026 is 20.9 billion euro. The revenues of the budget will amount to 18.6 billion and the expenditures will amount to 19.5 billion euro. The investments amount to 1.3 billion euro. The planned government sector deficit is 4.5 per cent of GDP, which remains within the limits of the exemption granted by the EU for rapid growth in defence spending. Due to the significant increase in the budget deficit, next year’s debt burden will grow by 1.7 billion euro, to 25.9% of GDP.

Compared to the budget of 2025, budget revenues will grow by 843 million euro or by 4.7 per cent. The total volume of expenditure will increase by 1.15 billion euro, or 6.3%, over the year. The total volume of investments will increase by 32%, or 305 million euro, over the year.

The government says the increase in defence spending to five per cent of GDP is the largest increase in expenditure, which will require an additional 844.5 million euro next year.

The government plans to invest 276.8 million euro in road infrastructure, including 65 million euro from motor vehicle tax, and 684.2 million euro in railways, among other things to ensure the completion of Rail Baltic by 2030.

According to the Bill, state revenues will decrease by 780 million euro as a result of the introduction of a uniform 700 euro income tax exemption and the cancellation of the planned two-percentage-point increase in income tax. The tax burden in Estonia will fall from 36.6% to 35.2%.

Together with the tax changes, the net income of those who earn the average salary of teachers will increase by 319 euro per month, or 3828 euro per year. However, earlier cuts in operating expenses will also be applied in the same areas – the total cuts in the Ministry of Education, the Ministry of the Interior, and the Ministry of Culture will amount to 94 million euro in 2026, to which the Ministry of Education and Research will add another 18 million euro through a budget revision.

28.9 million euro will be allocated for salary increases in the area of governance of the Ministry of the Interior in 2026, which will enable front line rescuers, police officers, rescue coordinators, and lecturers at the Estonian Academy of Security Sciences to receive a salary increase of nearly 10 per cent The average pension is expected to increase by 5.4 per cent, 210 million euro have been allocated in the budget for this purpose.

The motor vehicle tax reduction for families with children and the taxation of 8-9-seater M-category vehicles similarly to the N-category vehicles, which will come into effect in 2026, will reduce the amount of motor vehicle tax to be collected by 14 million euro. To achieve budget neutrality, 48 million euro from motor vehicle tax will be allocated to the consolidated project for national roads.

The subsistence benefit limit will be raised to 220 euro (an increase of 20 euro), and the subsistence level for each minor child in a family will be raised to 264 euro, for which an additional 4 euro million will be allocated from the budget.

The Finance Committee of the Riigikogu decided to send the State Budget for 2026 Bill (737 SE), initiated by the Government, to the first reading at the plenary sitting of the Riigikogu on 7 October.  

Riigikogu Press Service
Gunnar Paal
+372 631 6351, +372 5190 2837
gunnar.paal@riigikogu.ee
Questions: press@riigikogu.ee

 

Link uudisele: The Finance Committee started proceedings on the next year’s state budget Bill

Source: Parliament of Estonia

The Riigikogu passed an Act strengthening civil protection

By
Helena-Reet Ennet
-

NordenBladet —

The Bill on Amendments to the Emergency Act and Other Acts (662 SE), initiated by the Government, was passed with 66 Members of the Riigikogu voting in favour. The Act is one part of a package of amendments aimed at developing comprehensive national defence, increasing the preparedness of the Estonian people for potential future crises, and protecting people’s lives and health in the event of danger.

The Act regulates the organisation of sheltering by setting out the requirements to shelters and the principles for adapting sheltering locations. The explanatory memorandum notes that, since the security situation has changed due to Russia’s war of aggression against Ukraine, the organisation of sheltering in Estonia must also be improved and shelters must be built and sheltering locations adapted to better protect people in potential situations of danger.

The Act will establish a requirement under which shelters will have to be built, or existing spaces adapted as sheltering locations in large populous buildings. From July 1 next year, public shelters will have to be built in new buildings that are visited by crowds or have a closed net area of at least 10,000 square meters.

According to the Act, a non-public shelter will have to be built when a residential building or another public or special building with a closed net area of at least 1,200 square meters, or an industrial or warehouse building with a closed net area of at least 1,500 square meters is built.

Originally, the Bill provided for the construction of non-public shelters by 1 July 2028. However, the National Defence Committee made an amendment to the Bill for the second reading, bringing the relevant deadline forward by two years. After hearing the interest groups and the representatives of the fields of administration of the Ministry of Defence and the Ministry of the Interior, the Committee unanimously decided that the deadline for constructing non-public shelters must be the same, i.e. 1 July 2026. Under the Act, spaces will also have to be adapted as sheltering locations in existing buildings wherever possible.

According to the Act, along with the building of shelters and sheltering locations in buildings, shelter plans will also have to be drawn up. Activities related to sheltering, including preparations for sheltering, informing the public, and raising awareness, will be organized by the Rescue Board in cooperation with local governments.

The Act also regulates the use of the national emergency notification system EE-ALARM, including the installation and commissioning of siren devices, and the rights and responsibilities related to it. According to the amendment, all possessors of mass media, electronic communications, information screens in public spaces, and national mobile applications with at least 10,000 end users will have to join the EE-ALARM system so that important information would reach people quickly in the event of a potential threat. The Rescue Board will coordinate the preparation for the transmission of immediate emergency notifications. The Act also grants the Board the right to test the national emergency notification system.

In addition, the Act provides for an obligation for all employees of state and local government agencies, as well as agencies providing critical services to undergo civil protection training so that they can respond quickly, help people, and keep essential services running in a crisis situation.

Riigikogu Press Service
Karin Kangro
+372 631 6356, +372 520 0323
karin.kangro@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: The Riigikogu passed an Act strengthening civil protection

Source: Parliament of Estonia

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