Uibo told ERR that Eesti 200 MPs discussed the legislative intent for a car tax in Estonia during the group's meeting on Wednesday. While the coalition party has not shaped an official position yet, Uibo and an Eesti 200 expert working group believe an annual tax component would be unfair.

"Personally, I believe we could do away with the annual tax and only introduce a one-off registration tax," the MP said.

He explained that the idea behind a car tax is to promote a more environmentally friendly fleet in Estonia. Uibo said this means keeping older vehicles that are more expensive to own in other countries from being imported to Estonia.

"As concerns an annual tax, I cannot perceive there levers that would nudge or help modernize our fleet and it rather comes off as a punitive measure. Let us think of people in rural areas who need a car for lack of a proper public transport network," Uibo said.

The Eesti 200 MP emphasized that the party has not shaped an official position yet and will present the idea to its coalition partners.

Uibo also said that laying down an annual car tax from July next year would be premature.

"It is clear that Estonia's coffers are empty, while the tax should also work toward promoting a cleaner environment," the MP said, adding that any tax should be comprehensible for the population."

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