Government to pick car tax model in September

Cars in Estonia.
Cars in Estonia. Source: Siim Lõvi /ERR

The Ministry of Finance in July proposed two options for Estonia's upcoming vehicle tax. But whether one of those or a third option will be picked will not be decided before September.

Based on the first so-called broad model proposed by the Finance Ministry, the tax amount would be calculated based on a vehicle's environmental impact when it is manufactured, throughout its lifetime and when it is reclaimed. The other so-called narrow model would concentrate squarely on a vehicle's CO2 emissions.

Siiri Suutre, chief specialist for the ministry's communication department, told ERR that the ministry will await feedback and proposals until August 18.

"Based on the latter, a suitable tax model will be picked, which may be one of the two options or indeed a third. The bill will be prepared by the Finance Ministry, with the government set to discuss it in September before sending it off to the parliament. Changes can be made every step of the way," Suutre remarked.

The ministry's spokesperson said that Minister of Finance Mart Võrklaev (Reform) will present the bill to the cabinet.

"Other ministers will get the chance to express their opinion and make proposals, which is how the main items of the law bill be agreed," she added.


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Editor: Marcus Turovski

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