16 Acts were passed
The Riigikogu passed the amended version of the Act on Amendments to the Churches and Congregations Act (570 UA), initiated by the Government, which the President had refused to promulgate in April. Parliament omitted from the Act the prohibition on being guided by a person of significant influence located in a foreign country as that wording could be interpreted too widely in the President’s opinion. The transitional period was also extended from two months to six months to allow for the necessary changes to be made.
On the basis of a proposal of the Legal Affairs Committee, the Parliament amended the wording of the Act to the effect that a church, congregation, association of congregations or monastery may not be linked on the basis of its statute or any other document that is the basis for its activities, or economically, to a spiritual centre, governing body, religious association or spiritual leader located in a foreign country who poses a threat to the security or the constitutional or public order of the Estonian state.
The Riigikogu also specified what a potential threat meant. According to the amended wording, a threat to the security or the constitutional or public order of the Estonian state may occur, among other things, when a spiritual centre, governing body, religious association or spiritual leader incites, supports or finances activities aimed at violently changing the independence, territorial integrity or constitutional order of Estonia, supports or has supported military aggression or has called for war, a terrorist crime or otherwise unlawful use of armed force or violence. The phrase “incites, supports or finances activities aimed at violently changing the independence, territorial integrity or constitutional order of the Republic of Estonia” was added.
The Riigikogu first adopted the Act on 9 April. The Act is intended, among other things, to ensure that, under the guise of freedom of religion and freedom of association guaranteed by the Constitution, the religious organisations operating in Estonia cannot be used to spread hostile influence, disseminate extremist ideologies, or incite violence. According to the explanatory memorandum, Estonia stands for freedom of religion, and everyone has the freedom to choose whether to follow a religion and which religion to follow. However, in addition to respecting freedom of religion, belief, and association, the state must also take into account the challenges that threaten national security and the security of society.
The Act also specifies who can serve as a minister of religion or be a member of the management board of a religious association in Estonia. A person who is not allowed to reside or stay in Estonia cannot be a minister of religion or a member of the management board of a religious association. In addition, the requirements for the statutes of a religious association are specified and the possibility is created to leave a church whose activities, statutes, or membership of the management board do not meet the requirements established. For this, the religious associations will have to adopt new statutes and after that it will be possible to enter the amendments complying with the requirements into the register without the approval of the governing body of the church, in so far as obtaining such an approval may not be realistic.
The President did not promulgate the Act on 24 April, considering that the restriction on religious freedom and freedom of association it created was not proportionate. He saw it necessary to discuss the Act again in the Riigikogu and to bring it into conformity with the Constitution. On 14 May, the plenary of the Riigikogu decided that it would not pass the Act again without amendments but would begin to amend it.
Vadim Belobrovtsev from the Centre Party Group, Varro Vooglaid from the Estonian Conservative People’s Party Group and Peeter Tali from Estonia 200 Parliamentary Group took the floor during the debate. Jaanus Karilaid took the floor on behalf of Isamaa Parliamentary Group and Andre Hanimägi on behalf of the Social Democratic Party Group.
At the final vote, 68 members of the Riigikogu supported the passing of the Act and 17 voted against it.
The Riigikogu passed the Act on Amendments to the Aliens Act, the Code of Administrative Court Procedure and the State Fees Act (challenging of decisions regarding visas) (603 SE), initiated by the Government. It establishes the right of decisions to refuse to issue a visa to be challenged in court. At present, the applicant has no right to apply to the courts in the event of refusal to issue a visa.
The European Court of Justice ruled in a 2017 case that Member States must provide for a procedure whereby decisions to refuse to issue a visa could be challenged in court. Infringement proceedings have been initiated against Estonia and the Commission referred Estonia to the Court of Justice of the EU on 29 January. In addition, in January this year, the Supreme Court declared the Aliens Act unconstitutional in the part that it precludes the filing of an appeal with the administrative court for the issuance of a visa in a situation where the applicant was in Estonia during the visa procedure.
Instead of the current two-stage challenge proceedings, the Act establishes mandatory one-stage challenge proceedings after which decisions on visas and decisions on challenge can be appealed in administrative court. The rate of the state fee for reviewing an appeal will rise from EUR 80 to EUR 160.
Henn Põlluaas took the floor on behalf Isamaa Parliamentary Group during the debate. Ando Kiviberg from Estonia 200 Parliamentary Group also made a speech.
60 members of the Riigikogu were in favour of passing the Act and 11 voted against.
The Riigikogu passed the Act on Amendments to the Simplified Business Income Taxation Act and the Income Tax Act and the Repeal of the Security Tax (645 SE), initiated by the Government, which repeals the security tax which was originally planned to be in effect until the end of 2028. Instead of a security tax, the general income tax rate will rise to 24 per cent and the corporate income tax rate to 22 percent from 2026 to ensure stable financing of the state’s defence spending and long-term strengthening of defence capabilities. The VAT rate increase to 24 percent from July 2025, which will become indefinite, will also remain in effect.
A simple, uniform and more business-friendly income tax will apply to companies, where income tax is to be paid only on distributed, not current, profits. The explanatory memorandum points out that the amendment is also positive for the Estonian people, especially for less well-off taxpayers, as income tax is applied after the deduction of tax allowance. The current solution would have resulted in a two percent tax liability starting from the first euro.
The implementation of the security tax required the development of several services by the Tax and Customs Board which are now no longer needed. IT development costs would have been estimated at EUR 950,000 this year, EUR 735,000 next year and EUR 525,000 in 2027. The introduction of the security tax also required IT developments in the Social Insurance Board, the Estonian Health Insurance Fund, and the Estonian Unemployment Insurance Fund, which would also no longer be necessary once the Act enters into force.
Lauri Laats from the Centre Party Group, Urmas Reinsalu from Isamaa Parliamentary Group, Lauri Läänemets from the Social Democratic Party Group and Annely Akkermann from the Reform Party Parliamentary Group took the floor during the debate.
46 members of the Riigikogu supported the passing of the Act and 33 were against.
The Act on the State’s Supplementary Budget for 2025 (651 SE), initiated by the Government, will increase state budget revenue by EUR 26.6 million, expenditure by EUR 36.9 million and investments by EUR 42.0 million.
EUR 44.2 million of the expenses and investments go to comprehensive national defence projects that will be implemented later this year and are aimed at increasing crisis resilience. The money will be used to increase internal security, to improve the robustness of the medical system and the crisis response capacity of the Foreign Service, as well as to ensure the continuity of digital governance and the media sector.
The supplementary budget also provides for additional expenditure and investment, which will be covered mainly by external funds and additional revenues from the state’s economic activities. Only new activities will be added with the supplementary budget, and revenue-dependent expenditure projects will not be reviewed in their entirety.
Although the total volume of the state’s financing transactions will not change, the supplementary budget includes EUR 25 million in financing operations for placing in the investment fund and for contributions to share capital. Therefore, the loan commitment will be increased by the same amount, which will also entail an interest cost of EUR 0.4 million.
With an amendment made the during the proceedings, EUR 12 million will be allocated to the investment budget of the Transport Administration, including ten million euro to the consolidated project for national roads for the construction and repair works of roads, and two million euro to acquire land necessary for the construction of national roads. To this end, the budget will be redirected within the areas of government for the investments and operating expenses the cost of which will not be incurred until next year.
The Ministry of Social Affairs will reallocate EUR 2.2 million which will go to the Health and Welfare Information Systems Centre for various programme activities to cover the shortfall in the maintenance costs of the social protection information system SKAIS and the social benefits data register STAR.
The Act also includes motions to amend submitted by the areas of government, the need for which became apparent after the preparation of this year’s state budget, and which will not change the overall size of the budget. According to the state budget adopted last December, this year the state revenues will amount to EUR 17.7 billion, expenditure to EUR 18.2 billion, investments to EUR 873 million and financing transactions to EUR 679 million.
Andrei Korobeinik from the Centre Party Group, Diana Ingerainen from Estonia 200 Parliamentary Group and Aivar Kokk from Isamaa Parliamentary Group took the floor during the debate. Tanel Kiik took the floor on behalf of the Social Democratic Party.
47 members of the Riigikogu supported the passing of the Act and 23 were against.
The Act on Amendments to the Sport Act (518 SE), initiated by the Government, updates compliance with the rules of sports ethics, the requirements for the organization of sports events and the threshold for the allowance paid to volunteer referees.
In addition to the anti-doping rules, the rules against match-fixing and abuse, as well as other rules of sports ethics laid down by international sports organisations, the National Olympic Committee and sports federations will have to be followed in the future. Along with athletes, referees and background staff will also have to follow the anti-doping rules. The Act also provides for the bases for reclaiming paid-out amounts from those who have violated the rules of fair sport.
The Act specifies the list of sports for which it is necessary to apply for a permit from the local government when organizing competitions. According to an amendment, it will not be necessary to apply for an organisational permit from the local government for sports that do not have problems in practice but currently require application for a permit. At the same time, in the future, a permit will have to be applied for organising motor sport events where there have been problems with safety and where risks are higher.
According to the Act, the threshold for the allowance of volunteer referees will increase from EUR 20 to up to EUR 45 per day. The rate of the fine for legal persons for violation of requirements for the organisation of sports events will be increased from EUR 2,000 to EUR 20,000.
At the second reading the Riigikogu introduced an amendment to the Bill that would allow the provider of the coach’s labour cost subsidy to process data on the disabilities of children and young people in order to control the size of the training group. The aim is to allow young people and children with disabilities to be counted in training groups with a double coefficient, which means that, for the labour cost subsidy to be allocated to a coach, the training group can be smaller than that provided for in the regulation. This will help to better enrol young people and children with disabilities in training groups, to improve their training opportunities and to increase their physical activity.
The Riigikogu also supported an amendment according to which it would be possible to apply for a seasonal permit to organize sports events for up to one year if a competition takes place in the same location, for the same target group and with the same security requirements. The aim is to reduce the administrative burden on competition organizers.
70 members of the Riigikogu supported the passing of the Act and there was one abstention.
The purpose of the Act on Amendments to the Planning Act and Other Acts (acceleration of the deployment of renewable energy) (541 SE), initiated by the Government, is to promote the deployment of renewable energy. The amendments are intended to facilitate the processing of national designated spatial plans and municipal designated spatial plans planning wind farms and to ensure legal clarity in this process. To this end, the current provisions and procedural rules for the transfer of the funding of the creation of designated spatial plans are specified. The procedural provisions concerning cooperation and invitation to participate as regards national designated spatial plans, including the initial positions for pre-selecting a location and the strategic environmental assessment programme, are also amended.
The Act also specifies the provisions on the payment of the charge for the production of electricity from wind energy in order to ensure legal clarity and the payment of the charge and the distribution thereof to residents at a fair rate and to give local governments greater flexibility in deciding on the details of the payment of the charge. To this end, it specifies the commencement of the payment of the charge for the production of electricity from wind energy which will be the time of the commencement of the construction of the wind power plant and the production of electricity from wind energy.
An interim payment period is established for the charge for the production of electricity from wind energy. The interim payment period will be the period when a wind power plant is already producing electricity from wind energy, but the wind power plant does not yet have a permit for use. During the new charge period, the charge will be paid in the amount of 70 per cent of the charge for the production of electricity from wind energy. The provisions on the fees paid by municipalities to residents are also specified, taking into account issues that have arisen in practice. The Act unties the establishment of local government rates from the beginning of the fiscal year. In the future, the rate will enter into force six months after adoption.
In the course of the proceedings, an amendment was incorporated into the bill to repeal the requirement for resolutions to approve the detailed solutions for municipal designated spatial plans and amendments to the Electricity Market Act were incorporated to adjust the regulation on renewable energy reverse auctions. Ten other motions were included in the list of motions to amend which, for example, specified that if the pre-selection of the location of a designated spatial plan is suitable, a separate decision will no longer be made, and the plan can be directed directly to bringing into effect. Therefore, under the Act, the conditions that are the basis for issuing design specifications and a superficies licence will also be provided for in the pre-selection of the location.
Evelin Poolamets from the Estonian Conservative People’s Party Group, Aleksandr Tšaplõgin from the Centre Party Group and Mario Kadastik from the Reform Party Parliamentary Group took the floor during the debate.
46 members of the Riigikogu supported the passing of the Act and 12 were against.
The Act on Amendments to the Radiation Act and Amendments to Other Associated Acts (573 SE), initiated by the Government, introduces a very low risk radiation practice as a practice of a new risk level and in the case of it registration of the practice will be required instead of a radiation practice licence. At the second reading, the Riigikogu amended the Bill by adding a provision that would allow the Environmental Board to issue a registration after the entry into force of the Act, if the requirements are met, even if the application was submitted for a radiation practice license before the entry into force of the Act.
The plenary also supported other motions to amend that the lead committee had submitted for the second reading. For example, the regulation for determining the risk levels of radiation practices was specified and it is clearly provided that the Environmental Board determines the risk level of a radiation practice within the framework of the proceedings for the issue of a permit or registration, guided by the procedure established by a regulation of the Minister of Climate.
During the proceedings, the Riigikogu also decided to abandon the amendment of the requirements for appointing a radiation safety specialist. Thus, the current wording of the Radiation Act remains in force, according to which the designation of a radiation safety specialist is mandatory in the case of a high-risk radiation practice or if the holder of a radiation practice licence has more than ten exposed workers.
The Act also specifies the recognition of radiation practice licences issued in the European Economic Area and makes amendments based on the recommendations of the International Atomic Energy Agency to ensure that the legislation is in line with international standards.
58 members of the Riigikogu supported the passing of the Act, and one was against.
The Act on Amendments to the Health Services Organisation Act, the Act on Amendments to the Unemployment Insurance Act and Amendments to Other Associated Acts, and the Work Ability Allowance Act (604 SE), initiated by the Government, creates the opportunity for people to opt out of life-prolonging healthcare services.
Under the Act, the right to draw up an advance healthcare directive will be given to adults with active legal capacity and capacity to exercise their will, as well as people with limited active legal capacity if a doctor considers them competent to make decisions about their health. Mandatory consultation with a doctor will ensure that the decision is thoroughly considered. The person can amend or withdraw their advance directive later if they wish. An advance directive will be submitted digitally in the health information system, exceptionally also on paper if the person is not digitally competent. In such a case, a health care professional will enter the data.
A person will be able to specify in their advance directive which healthcare services they want at the end of their life or which they prohibit from being provided. In an advance directive, a person will be able to opt out of all life-prolonging healthcare services, such as resuscitation, artificial respiration, tube feeding, dialysis, antibiotic treatment, chemotherapy, and surgery. The opting out will be linked to the onset of a medical condition described in the person’s advance directive which will be recorded by a doctor and will be a prerequisite for implementing the directive. It will not be possible to request euthanasia or assisted suicide by an advance directive.
The Act enters into force on 1 January 2027 to ensure sufficient time for IT developments to be completed, doctors to be trained and the public to be informed.
Irja Lutsar from Estonia 200 Parliamentary Group, Lauri Laats from the Centre Party Group, Margit Sutrop from the Reform Party Group and Priit Sibul from Isamaa Parliamentary Group took the floor during the debate.
53 members of the Riigikogu supported the passing of the Act and seven were against it. There were two abstentions.
The Act on Amendments to the General Part of the Environmental Code Act and Other Acts (611 SE), initiated by the Government, simplifies the administrative processes connected with the services relating to environmental protection permits in order to reduce the administrative burden for economic operators and individuals. The aim of the amendments is to improve the environmental protection permits system so that the impact of an activity on the environment would be better balanced with the administrative burden relating to the permit.
The Act contains amendments according to which it will no longer be necessary to issue environmental permits for minor activities, and in some cases, minor activities will no longer need to be registered. For example, road and bridge builders will no longer have to apply for registration of activities that pose a risk to the aquatic environment, such as the construction of a bridge or culvert as part of a road or railway. The amendment will help speed up the completion of important developments in the construction of, for example, the Defence Forces training areas and Rail Baltic.
Also, schools, kindergartens and other legal entities will no longer have to apply for a registration as waste handler if they want to compost their bio-waste on site and the amount is less than one tonne per year. The Act also defines the obligations of the parties involved in the protection of the environment more clearly, reduces the frequency of fulfilling the obligations, clarifies monitoring processes and links environmental requirements, such as the permit obligation and the application process, more fairly to the potential environmental impact of the activity.
In the course of the proceedings, the Riigikogu made an amendment to the Act allowing for the consent for cutting layers of trees and shrubs in water protection zones to be applied for through the environmental decisions information system. This will reduce the administrative burden, consolidate information into one system, and give the Environmental Board a better overview of environmental activities. In some cases, the applicant receives consent as an automatic decision, in which case the activity can begin immediately.
Parliament also introduced an amendment to the Act which included a derogation in the Waste Act that exempted farmers from the obligation of a digestate storage security if the digestate is used for soil treatment in agriculture. If the farmer wishes to handle waste digestate in another way, for example to compost it with other waste, this is classic waste handling, and the security derogation will not apply.
The Riigikogu also made an amendment to the Act which abolished the special rules concerning the Supervisory Board of the Foundation Environmental Investment Centre. In the future, general requirements will apply to the supervisory board of the foundation according to which the founder appoints and recalls the members of the supervisory board by his or her decision and he or she appoints one member on the proposal of the Minister of Finance. The mandates of members of the Riigikogu as members of the Supervisory Board of the Environmental Investment Centre will expire on 31 August 2025.
51 members of the Riigikogu supported the passing of the Act.
The purpose of the Act on Amendments to the Law of Obligations Act and Amendments to Other Acts arising therefrom (613 SE), initiated by the Government, is to allow people to use their bank cards in certain shops, petrol stations and pharmacies in an emergency, even if the internet service is interrupted.
Under the Act, the banks selected as critical entities will also have to offer customers offline card payment options: the bank will have to set an offline individual limit on the chip of the customer’s bank card, and merchants’ payment terminals will have to be able to process offline card payments. This will ensure that people can buy critically important essential goods such as food, fuel, and medicines even if the merchant’s payment terminal fails and is not connected to the bank’s payment system.
Five banks have been designated as critical entities in Estonia: SEB Bank, Swedbank, Luminor Bank, LHV Bank and Coop Bank. Among fuel retailers, Alexela, Olerex, Circle-K, Neste Estonia, Terminal, Premium 7 and Jetoil are critical entities. No critical entities have yet been selected for grocery stores and pharmacies.
The Act also changes the regulation for opening and closing a private individual’s payment account with basic features, i.e. the account used for making the most essential payment transactions. Among other things, it provides clear grounds for when a bank can close a consumer’s bank account. For example, this will be possible in the event of reasonable suspicion of money laundering or if the consumer has used the account for illegal activities.
The Act also specifies the payment of state fees in cash and provides that the authority to which a state fee is paid may decide that it can also be paid in amounts greater than ten euro in cash.
In addition, the Act amends the competences of the Consumer Protection and Technical Regulatory Authority and the Financial Supervision Authority in misdemeanour and supervisory proceedings related to the financial sector.
49 members of the Riigikogu supported the passing of the Act.
The Act on Amendments to the Liquid Fuel Act (622 SE), initiated by the Government, promotes the use of sustainable aviation fuels in commercial air transport and brings the Act into line with the European Union regulation on ensuring a level playing field for sustainable air transport.
The EU regulation aims to encourage the expansion of sustainable aviation fuel production opportunities and to avoid a fragmentation of the Union air transport market, possible competitive distortions, and unfair refuelling practices. The Act specifies the requirements for the supply and reporting of sustainable aviation fuels, designates the Environmental Board and the Transport Administration as the competent authorities in Estonia, and provides for rules related to supervision and liability.
The EU regulation applies only to the refuelling of aircraft used for commercial air operations in civil aviation. In Estonia, this will most affect Tallinn Airport Ltd which will have to ensure the availability of sustainable aviation fuels at the airport, and this will also affect aviation fuel suppliers to Tallinn Airport as well as airlines refuelling in Estonia.
46 members of the Riigikogu supported the passing of the Act and three were against it.
The main objective of the Act on Amendments to the State Secrets and Classified Information of Foreign States Act, the Public Procurement Act and the State Fees Act (623 SE), initiated by the Government, is to update the State Secrets and Classified Information of Foreign States Act so that applying for Facility Security Clearances would be more flexible than before.
The Act will improve the quality and consistency of the authorisation to assess the trustworthiness and reliability of legal entities and to handle state secrets. In the changed security situation, allied countries are expecting ever closer scrutiny of Estonia’s legal entities and supply chains so that our credibility would be ensured. Therefore, a clear and effective legal framework must support the competitiveness of Estonian economic operators abroad.
The aim of the Act is to establish a regulation that would prevent Estonian economic operators from perceiving the requirements regarding the handling of classified information as an inconvenient obligation and would give them the desire and motivation to meet the conditions set out.
At the second reading, the Riigikogu amended the Act by adding a provision according to which the Minister of Defence would establish the classification levels and the terms for classification for items for military purpose separately for each item of military purpose, so that the information could be protected as a state secret if necessary. The parliament also incorporated an amendment into the Act to amend the Public Procurement Act with exceptions concerning the defence and security sector.
51 members of the Riigikogu supported the passing of the Act.
The Act on Amendments to the Consumer Protection Act (624 SE), initiated by the Government, updates the provisions of the Consumer Protection Act to reduce the number of printed purchase documents and paper invoices sent by mail. The current legal provisions are not flexible enough, although technological developments increasingly allow documents to be transmitted electronically and also stored electronically. As a result, substantial amounts of paper continue to be consumed which increases both the environmental footprint and administrative costs for traders.
The aim of the amendments is to encourage environmentally sustainable and modern solutions and to give traders the option to transmit documents digitally. In the future, the consumer will be able to receive the invoice notification as a text message or store the purchase document in the trader’s mobile application. The Act also takes into account the needs of consumers in need of greater protection, in particular the elderly. People who receive only paper invoices will continue to have the option of receiving documents in paper format. If the consumer has previously received an electronic invoice via e-mail in addition to a paper invoice, then after the amendment enters into force, the service provider will be able to propose to the consumer that in future they should submit invoices only via e-mail. If the consumer does not inform the service provider within 30 days of making such a proposal that it is not suitable for them, they will be deemed to have agreed to this method of notification.
If the consumer continues to request an invoice both by email and by post, the trader will have the right to demand that the consumer reimburse the postage costs for sending the invoice on paper.
The bill originally provided that the amendments made to the Consumer Protection Act would enter into force on 1 January 2026 but during the discussions during the proceedings it was understood that the amendments could enter into force earlier, on 1 September 2025. The entry into force of the amendments on 1 September will ensure that traders and the supervisory authority (the Consumer Protection and Technical Regulatory Authority) have time to inform consumers before traders can implement the changes.
51 members of the Riigikogu supported the passing of the Act.
The purpose of the Act on Amendments to the Payment Institutions and E-money Institutions Act and the Payment and Settlement Systems Act (634 SE), initiated by the Government, is to give payment and e-money institutions access to settlement systems that enable instant payment services.
Currently, only banks offer instant payment services, as only they have access to the necessary current accounts at the Bank of Estonia. The Act also provides for the possibility for other payment institutions and e-money institutions to participate in the settlement system, so that they can also participate in the instant payments market. An instant payment means a payment where money moves from the payer’s account to the payee’s account within a few seconds.
The regulatory change will increase competition in the payment services market. It can also lead to new and innovative payment solutions, such as mobile payment applications, and increase competition in cross-border payments. In order to participate in a settlement system, a payment or e-money institution must meet certain requirements to ensure the stability and integrity of settlement systems.
The Act transposes the amendments to the Payment Services Directive and the Settlement Finality Directive and ensure the proper national implementation of these directives. The Financial Supervision Authority will have the right to verify compliance with the requirements of the regulation.
52 members of the Riigikogu supported the passing of the Act.
The Act on Amendments to the Preschool Education Act and to the Act on Amendments to the Republic of Estonia Education Act and Amendments to Other Associated Acts (establishment of an obligation to study) (644 SE), initiated by the Rural Affairs Committee, provides for the abandonment of the licence obligation for childcare facilities where catering is provided and for operators who provide the catering service for childcare facilities which was due to come into force on 1 September.
Since 2021, childcare service providers engaged in catering have not had the obligation to apply for an activity licence from the Agriculture and Food Board, but on 1 September, the Act on Amendments to the Preschool Education Act and Other Associated Acts is entering into force, according to which the obligation to apply for a licence for childcare facilities would be reintroduced.
Since such childcare facilities and operators providing catering services to them already have the obligation to notify the Agriculture and Food Board of their economic activities, including the provision of catering for children, a separate licence application process would lead to an excessive administrative burden for both the facilities providing the childcare service, and the Agriculture and Food Board which processes the licences.
In the course of the proceedings, an amendment was incorporated into the Act giving local authorities extra time to draft and establish new regulations. According to a provision included in the Act, the necessary regulations will have to be introduced by 31 August 2026 at the latest.
50 members of the Riigikogu supported the passing of the Act.
The Act on the Termination of the Convention between the Republic of Estonia and the Republic of Belarus for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (666 SE) terminates the Convention with Belarus for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on Income which has been in force since 1998. The aim of the convention is to encourage investments between the two countries, but Belarus has unilaterally violated the convention by partially suspending the application of the convention to Estonian residents.
A final vote was held on the motion of the lead committee.
47 members of the Riigikogu supported the passing of the Act.
Four Bills passed the first reading
The Credit Information Sharing Bill (652 SE), initiated by the Government, passed the first reading in the Riigikogu. The deliberation had been adjourned due to the end of working hours on Tuesday. The Bill is a preparation for the creation of a credit information register. The register will allow banks and other lenders to better assess the solvency of the recipients of loans and help prevent people taking excessive loans.
In the future, all lenders who are supervised by the Financial Supervision Authority will have to forward information on the loans taken by each person to the register. Before granting a new loan, they will have to check what liabilities the person already has.
Consolidating this information into a single central register will give a clearer picture of the actual solvency of a person and prevent people from taking more loans than they can afford. The credit information register will consolidate information on all financial obligations of a person, be it housing loans or consumer loans, car leases, consumer credit or express loans.
Only banks and other official lenders will have access to the information in the register. A person will be allowed to set a loan restriction on themselves. Time limits for keeping people’s credit information will also be established. For example, information on loans repaid on time will be kept for 1 month + 8 days after repayment.
It is planned to delegate the task of maintaining the register to private sector and the costs will be covered by fees. The Bill will establish clear rules and requirements for the registrar and its activities to ensure transparency and credibility, similarly to other economic operators in the financial sector. According to the plan, the register could start operating in 2028.
Lauri Laats from the Centre Party Group and Heljo Pikhof from the Social Democratic Party Parliamentary Group took the floor during the debate.
The Bill on Amendments to the Basic Schools and Upper Secondary Schools Act and the Vocational Educational Institutions Act (evaluation of heads of school and the career model of teachers) (653 SE), initiated by the Government, passed the first reading. Under the Bill, career grades corresponding to professional competences will be assigned to teachers who meet qualification requirements, in order to develop the professional skills and professional careers of teachers. They are the following: novice teacher, teacher, senior teacher, and master teacher. A career model with a similar structure will be created for both general education and vocational teachers.
The amendment will set uniform bases for the establishment of the minimum remuneration for all teachers, that is, a minimum remuneration will also be provided for teachers working in vocational education institutions. In 2026–2028, the minimum salary coefficients for the grades of the teacher’s career model will be 1.0 for novice teachers and teachers, 1.1 for senior teachers, and 1.3 for master teachers.
Entering the teacher’s profession will be made more flexible – it will be possible to employ people who have acquired teacher’s education before 2013 but who have no work experience, or who have a doctorate. It will be possible to conclude a fixed-term contract for up to three years instead of the current one year with persons in teacher training.
The Bill will also establish an obligation for heads of schools to undergo evaluation, according to which the owner of a school will have to conduct an annual appraisal of each head of school, and an evaluation during their fifth year of work. The evaluation will be carried out by a committee formed by the owner of the school, and it will evaluate whether the head of the school meets the requirements set for their post.
The amendment to the Basic Schools and Upper Secondary Schools Act is scheduled to enter into force on 1 January 2026 and the amendment to the Vocational Educational Institutions Act on 1 June 2026.
Vadim Belobrovtsev from the Centre Party Group, Liina Kersna from the Reform Party Group and Tõnis Lukas from Isamaa Parliamentary Group took the floor during the debate.
The Bill on Amendments to the Atmospheric Air Protection Act and Other Acts (partial transposition of the amendments to the greenhouse gas emission trading scheme directive) (667 SE), initiated by the Government, will update the Emissions Trading System (EU ETS) by adding maritime transport to the system, as well as eliminating free emission allowances in aviation and increasing funding for the Modernisation and Innovation Funds. The amendments will have significant economic and environmental impacts. The amendments may increase costs for companies, but at the same time, new opportunities will arise to invest in green technologies and reduce emissions.
The extension of the EU ETS to the maritime sector will increase the administrative and financial burden on companies within its scope of application in relation to the acquisition of emission allowances. The administrative burden on operators of stationary installations and aircraft will not change significantly with the Bill. The Environmental Board will be given new tasks in monitoring and checking emissions.
Andres Metsoja from Isamaa Parliamentary Group took the floor during the debate.
Isamaa Parliamentary Group moved to reject the Bill. 11 members of the Riigikogu supported rejection and 44 were against.
The Bill on Amendments to the Police and Border Guard Act (670 SE), initiated by Members of the Riigikogu Peeter Tali, Ando Kiviberg, Anti Haugas and Mati Raidma, also passed the first reading. Its aim is to ensure legal clarity and compliance with the requirements for the protection of fundamental rights in the installation and use of number plate recognition cameras.
The Bill will provide for the bases for the use of number plate recognition cameras and for the processing and storage of and access to their data. This is a legal regulation of a technical surveillance measure, the central goal of which will be to help prevent dangerous situations and detect crimes, including to capture wanted persons. According to the Bill, the amendment of the Act will ensure that the use of modern technologies in police work is carried out proportionately and legitimately and will ensure a data processing framework that is understandable to the public and verifiable.
The bill provides that images taken with cameras and the data identified from them, such as the registration number and the time and place when the image was taken, may be viewed only within the framework of proceedings and this will have to be justified. Also, the photos taken will have to be deleted after 45 days at the latest and it will have to be possible to exercise supervision over the viewing of the photos.
Urmas Reinsalu from Isamaa Parliamentary Group, Stig Rästa from Estonia 200 Parliamentary Group and Anastassia Kovalenko-Kõlvart from the Centre Party Group took the floor during the debate. Andres Hanimägi took the floor on behalf of the Social Democratic Party.
Isamaa Parliamentary Group and the Centre Party Group moved to reject the Bill at the first reading. 12 members of the Riigikogu supported rejection and 48 were against it.
Two drafts were dropped from legislative proceedings
The Riigikogu rejected the Draft Resolution of the Riigikogu “Making a Proposal to the Government of the Republic” (630 OE), submitted by the Social Democratic Party Group. It called for the government to develop an anti-fraud action plan to fight more effectively against the increasingly complex and widespread wave of fraud, which causes millions of euro in losses to the people of Estonia every year. In the opinion of the submitters, the current and future potential problems should have been mapped, best practices from abroad should have been analysed, and proposals should have been made on how to better protect the people of Estonia and their livelihoods.
Vladimir Arhipov from the Centre Party Group took the floor during the debate. Andres Hanimägi took the floor on behalf of the Social Democratic Party.
At the final vote, 18 members of the Riigikogu supported the draft Resolution and 46 were against it. A majority vote would have been needed for the Resolution to be passed.
The Riigikogu also rejected the Bill on the Repeal of the Motor Vehicle Tax Act (647 SE), initiated by Isamaa Parliamentary Group, which was intended to repeal the Motor Vehicle Tax Act from the beginning of next year. In the opinion of initiators, the motor vehicle tax established by the Act worsens the economic security of Estonian people and the competitiveness of companies.
Urmas Reinsalu from Isamaa Parliamentary Group and Anti Allas from the Social Democratic Party Parliamentary Group took the floor during the debate.
The Finance Committee moved to reject the Bill at the first reading. 42 members of the Riigikogu supported the rejection and 11 were against it.
The sitting ended at 11.08 p.m.