Riigikogu approves car tax bill

The Riigikogu approved the Motor Vehicle Tax Bill at its third reading on Wednesday's session. Two taxes will be introduced from the start of 2025.
Fifty-seven Riigikogu members supported the law, while 28 voted against it.
The new legislation aims to encourage drivers to make environmentally friendly choices when purchasing a new vehicle and to support the use of old cars until the end of their useful life.
From January, owners will have to pay two new taxes.
The first will have to be paid by owners annually on vehicles registered in the motor register. The tax rate for passenger cars will consist of a base component, a specific CO2 emissions component and a gross weight component.
Secondly, a motor vehicle registration fee will be established which will be paid upon the registration of passenger cars and vans in the motor register.
Buying and owning a car will become between 5 and 15 percent more expensive than they are now. Exemptions will be made for people with disabilities.
Isamaa and Center have called on the president not to promulgate the law.
Helir-Valdor Seeder, leader of the Riigikogu's Isamaa faction, called the tax morally and legally unacceptable. He said 20,000 people have signed a petition asking the president not to announce the law.
The Center Party believes the tax is unconditional and said it plans to challenge it in the Supreme Court.
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Editor: Mirjam Mäekivi, Merili Nael, Helen Wright