Estonian finance minister to open up car tax debate in mid-July

Cars. Source: Siim Lõvi/ERR

Estonian Minister of Finance Mart Võrklaev (Reform) said, that he wants to open up a public debate on the proposed car tax after he returns from leave in mid-July. This is the time when the finance minister plans to have a draft proposal ready for discussion.

"We would like to come out with this draft in the middle, or second half, of July, outline the possible options and engage. When I come back from my vacation, the plan is to come out with the [draft], talk about what the ideas are and listen to the public and then wait for feedback," Võrklaev told ERR.

Võrklaev preferred not to discuss the precise details of the proposed car tax for the time being. "I wouldn't comment on the content at all at the moment, because that is the whole point of this draft, to come up with these ideas and questions and then discuss them," said Võrklaev.

The aim is to send the draft bill to the Riigikogu by fall and have it adopted into law before the end of the year. "Our plan has been to process it in the fall. The coalition agreed to implement it on July 1 next year," said Võrklaev.

"The tax bills that we have now adopted affected existing taxes and were, in the most part, changes to their percentages, which also allowed this to be done faster. However, as the car tax is essentially a new tax, it needs longer to prepare and a broader discussion," said Võrklaev.

According to current government plans, an analysis of the introduction of the car tax should be ready in September.

While major tax reforms were adopted by the Riigikogu before Midsummer, the proposed car tax was not among them. According to the coalition agreement, the car tax is eventually expected to raise €120 million a year for the state budget.


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Editor: Michael Cole

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