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The Bill on write-off of study loans of parents of children with a severe disability that was deliberated in the Riigikogu today provides that the state will write off study loans of parents of children with a severe disability starting from January next year. Under the current procedure, a person who has taken a study loan has the right to apply for a write-off of the study loan by the state when he or she loses capacity for work or when a severe disability is identified in his or her child.

According to the Bill on Amendments to the Study Allowances and Study Loans Act and the Work Ability Allowance Act (417 SE), initiated by the Government, in the future, for a study loan to be written off by the state, an application will have to be submitted to the Social Insurance Board. At present, the Ministry of Finance and the Ministry of Education and Research represent the state in the write-off of study loans.

The representative of the initiator of the Bill, the Minister of Social Protection Kaia Iva said that the amendment would mean an additional expenditure of 633 047 euro for the state this year. 129 634 euro per year has been calculated as the expenditure in the following years.

The Chairman of the Social Affairs Committee Helmen Kütt, who took the floor on behalf of the lead committee, explained that, according to the Bill, it will be possible to write off a study loan only if the parent has taken the loan before a severe disability is identified in the child.

Representatives of factions Monika Haukanõmm, Jürgen Ligi and Tiina Kangro took the floor during the debate and presented their positions.

On the motion of the Finance Committee, the Bill on Amendments to § 4¹ of the Taxation Act (391 SE), initiated by the Estonian Reform Party Faction, was rejected in the Riigikogu at the first reading with 47 votes in favour. 37 members of the Riigikogu voted against the rejection. Thus, the Bill was dropped from the legislative proceedings. According to the Taxation Act, a period of at least six months must generally remain between the adoption of an Act concerning a tax and the enforcement thereof. The Bill provided that in exceptional and justified cases it would be possible for the legislator to adopt Acts concerning taxes and amendments to such Acts with an earlier deadline for entry into force. Such cases include, in particular, tackling tax evasions that need prompt settlement, and responding to a significantly changed economic, financial stability, environment or security situation, or prevention of related risks. In the deliberation of the Bill there was a lively discussion on tax policy issues.

Verbatim record of the sitting (in Estonian) 

Video recordings of the sittings of the Riigikogu can be viewed at https://www.youtube.com/riigikogu

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Riigikogu Press Service

Eva Vahur
631 6592, 53300619
[email protected]
Questions: [email protected]