"The law states that motor vehicles owned by persons with disabilities which are modified or adjusted for the transport or use by people with disabilities are not taxed. Such vehicles are also not subject to the registration fee. But neither exemption applies in the case of persons whose mobility impairment does not require a specially reconstructed or modified vehicle," Karis said in his decision.

"Therefore, the law still requires people with severe mobility disabilities and who differ only in that they can use an unmodified vehicle to pay both the vehicle tax and registration fee. The principle of equal treatment requires people in a similar situation to be treated equally," Karis emphasized.

The president stated that it is unclear why the need to use a vehicle is not the determining factor for tax exemption, but rather whether the vehicle needs to be modified or adapted. The head of state also disagrees with the government's justification that although the tax exemption only applies to modified and adapted vehicles, the government plans to generally increase support for people with disabilities.

"Even if benefits were raised on the whole, this would not remove the violation of the equal treatment principle. Giving only some people in a similar situation a tax exemption would still be arbitrary. A person with a severe mobility impairment would hardly be comforted if told that while they are being treated worse for no sensible reason, it is permissible because general disability benefits have gone up. Equal treatment is an independent value, which the Constitution protects for everyone, irrespective of their financial situation," Karis wrote.

By refusing to promulgate the law, the president is returning it to the Riigikogu for the parliament to discuss the law again and rectify unconstitutional aspects.

The Riigikogu passed the Vehicle Tax Act on June 12, with 57 votes for and 28 against.

According to the bill initiated by the government, a two-part motor vehicle tax will be introduced in Estonia starting next year. The tax will consist of two components: an annual fee paid by the vehicle owner for vehicles registered in the traffic register, and a registration fee paid when registering cars and vans in the traffic register.

The motor vehicle tax for passenger cars will include a base component, a component based on CO2 emissions and a component based on the vehicle's gross weight. Emergency vehicles, privately owned vehicles modified or adapted for use by people with disabilities and vehicles of foreign missions according to international agreements will be exempt from both the motor vehicle tax and the registration fee.

The Tax and Customs Board will collect the motor vehicle tax, while the Transport Administration will collect the registration fee. The motor vehicle tax is expected to bring approximately €200 million to the state budget.

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