No major changes expected for car tax draft policy

The joint ministries building in Tallinn.
The joint ministries building in Tallinn. Source: Siim Lõvi /ERR

No major changes are expected to be made to the car tax draft policy, although 50 amendments were submitted by the consultation deadline on Monday.

The Ministry of Finance received significantly more feedback and suggestions from interest groups than usual on this draft.

"There have been a few in the past and more proposals are still trickling in. I think some will still be sent in," said Evelyn Liivamägi, vice chancellor for financial and tax policy at the ministry.

One of those is the Ministry of Climate which has not yet sent its feedback. Officials say they plan to coordinate their plans with the ministry.

"The model we have arrived at, in cooperation with the Ministry of Finance, is climate-friendly and one that is quite in line with our earlier proposals. We have rather different technical comments and details in there," said Keit Kasemets, the secretary general of the Ministry of Climate.

The final draft should reach the coalition in two weeks' time. If it's given the go-ahead by the government, it could be adopted by the Riigikogu next spring and enter into force in 2025.

Chairman of the Social Democratic Party Lauri Läänemets said there is still work to be done and details to be finalized. Questions arise over the fees for old and new cars.

"Older cars are often owned by people who do not have as much money for car tax. We've wanted to make sure that people on lower incomes, often in the middle class, who have older cars, that there is some relief for them," Läänemets said.

At the same time, no big changes are expected.

"With bills that are already political compromises one way or another, any change requires another political compromise. At the moment, no major changes are foreseen," said Liivamägi.


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Editor: Marko Tooming, Helen Wright

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