Last week, government coalition party Eesti 200 suggested that the proposed car tax be introduced only at the point when vehicles are first registered, as a means of discouraging the import of older, less environmentally-friendly cars into Estonia.

Minister of Climate Kristen Michal has said that the proposed tax ought to focus more on the environmental impact of vehicles, particularly their CO2 emissions, and less on their age.

According to Hussar, the climate minister's proposals largely align with the views of Eesti 200.

"Of course, on the one hand, our goal must be to reduce the pollution of the car fleet, and the proposals put forward by the climate minister would certainly help to do that," said Hussar.

Hussar said that the car tax must go hand in hand with improvements to public transport.

"We have agreed that these discussions will continue next week, and I am sure the proposals that have been made will help to improve the draft car tax considerably and implement the objectives," he said.

Hussar said he is inclined to support the proposal made by Eesti 200's working group, which would involve abandoning the annual component of the tax to focus only on the part to be paid at the point of a vehicle's first registration. However, he added that the best way forward would be reached during the discussions.

The car tax is expected to come into force from July next year, with Hussar saying there was still plenty of time to develop it.

"I believe that it is through such substantive in-depth discussions that the best solution will be found," Hussar said.

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