Kaja Kallas' looming EU appointment leaves Reform in power vacuum

While the Social Democratic Party (SDE) and Eesti 200 would like to discuss how to move forward with the Vehicle Tax Act after President Alar Karis vetoed it, what is seen as Prime Minister Kaja Kallas' imminent departure to Europe has created a power vacuum in her Reform Party, with ministers remaining silent on the issue.
The president sent the car tax bill back to the Riigikogu after finding aspects of it unconstitutional but Reform Party ministers on Wednesday did not wish to comment on what will happen next. Prime Minister Kaja Kallas is on a visit to Luxembourg, while Minister of Finance Mart Võrklaev and Minister of Defense Hanno Pevkur are on holiday. Climate Minister Kristen Michal said in a brief written reply that the content, pace of proceedings and fiscal effect of the law will be determined by the Riigikogu and that a decision of whether to change aspects of the law and how will be made in the coming weeks.
Only Riigikogu Vice President Toomas Kivimägi explained that the parliament will need to be convened for an extraordinary sitting.
"We are talking about planned revenue of €230-240 million for the 2025 state budget. While we'd perhaps like to disagree with the president both in principle and from a legal point of view, that would very likely end in a Supreme Court dispute. Because we do not have the time and the window of opportunity is closing, I believe we should amend the law. In that case, we could pass the law in July and have it enter into force on time," Kivimägi noted.
The deputy speaker said that the new tax would in that case take effect from February next year. PM Kallas told Vikerraadio Tuesday that the tax could still be laid down from January as leaving six months between an act's passing and its entry into force is only necessary in general cases. Reform's coalition partners were not amused by this approach.
"Everything to do with taxes, laying new burdens on society needs to be passed six months in advance. We need to discuss it in the coalition whether to pass an amended version or how to move on," said Eesti 200 head, Foreign Minister Margus Tsahkna.
But fiscal decisions are stuck behind the Reform Party's power vacuum today, he added.
"There is a lot of political chaos here. The next two days will tell whether our prime minister will be sent to Europe. If she ends up going, Reform will have to elect a new chairman, which will be followed by a new government, and all of it will take time," Tsahkna said.
"The parliament can make decisions if there is a coalition. And it cannot decide for an outgoing one. So, it all depends on what the proposal will be and what is the premier's plan. The sooner Reform makes its in-house decisions, the sooner we can move on with all of these questions," said Lauri Läänemets, minister of the interior and chairman of SDE.
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Editor: Marko Tooming, Marcus Turovski