Finance Ministry Again Pushing Company Car Tax ({{commentsTotal}})


Finance Minister Jürgen Ligi has again sent a bill that would cut VAT deductions on business vehicles used for private trips.

ETV reported on Thursday that the new bill is essentially the same motion that was rejected by interest groups and lawmakers twice last year.

The topic was a 24-million-euro question last year as the income (24 million euros) from the bill was already written into the 2014 state budget, and after being voted down, the government had to find cover in said amount.

Currently, the government gives a full tax break on VAT when a company buys a car. The bill would limit the discount to half, and a maximum of 2,000 euros, although there would still be a number of exemptions, such as for taxis and cars used for driving lessons, as well as vehicles bought for resale and those used solely for business.

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