President Alar Karis had in June returned the law to the Riigikogu unsigned, citing unequal treatment of people with disabilities – the tax would have not applied to those with specially modified vehicles due to their disability, but those with disabilities still driving an un-modified vehicle would still have been liable for the tax.

The revised bill which passed the vote establishes a motor vehicle tax in Estonia, consisting an annual fee paid by vehicle owners for registered vehicles and a registration fee for larger passenger vehicles and vans.

The legislation will now support individuals with disabilities but not via tax exemptions, with additional benefits provided instead – mainly a one-off compensation payment in June 2025, to mitigate the impact of the car tax and ahead of changes to social support legislation for people with disabilities.

The Ministry of Social Affairs said the law will also improve disabled people's access to assistive devices.

The bill passed at an extraordinary Riigikogu sitting Monday, called primarily for its processing, and which included both the second and third readings on the same day.

Substantive amendments may be made between first and second readings, but not between the second and third – and final – reading.

Reform MP Annely Akkermann, chair of the Riigikogu Finance Committee, called the car tax a special case in terms of implementation timescale. "According to the law on taxation, amendments should generally be enforced six months ahead. However, this situation is unique; few tax or legislative changes are debated one year in advance," Akkermann told "Aktuaalne kaamera."

The car tax comes into effect on January 1, 2025, and if enacted as proposed will also:

- Increase support for children severe and profound disabilities (to €180 and €270 per month to those groups respectively), providing an additional monthly support of €18.91 and €28.36 for families with disabled children, again in those respective groups.

- Boost support for working-age individuals with profound disabilities to €100, offering an additional €46.3–56.53 per month.

- Standardize support for working-age individuals with moderate disabilities at €50, bringing them an additional €0.91–15.22 per month.

The law will also eliminate the requirement for a determined disability severity level or reduced work capacity as a prerequisite for state subsidies for assistive devices, and the actual need for the assistive device, determined by a specialist issuing the certificate, will be the basis for support instead.

For minors,, this amendment means that the state will reimburse 90 percent of the cost of required assistive devices, while for working-age individuals, the state will cover 40–90 percent of the cost, based on the assistive devices list.

This will entail an additional annual state investment of €9.1 million.

EKRE leader Martin Helme has said that the revised law remains illegal as it comes into effect less than six months (ie. on January 1, 2025) after its passing, whereas legislation amending taxation must come into effect no earlier than six months after the law passed.

"Additionally, the coalition has been changing and amending laws as it sees fit, disrupting the legislative process," Helme told "Aktuaalne kaamera."

Isamaa leader Urmas Reinsalu called the increase in disability support" insignificant" saying: "For example, the increased support for an average disabled pensioner amounts to only 21 cents per month."

Priit Lomp, chair of the Social Democrats' (SDE) Riigikogu faction, rejected this and said that the support increases are more substantial than Reinsalu suggested.

The Riigikogu initially passed the government-initiated motor vehicle tax bill on June 12. President Karis refused to promulgate it on June 25, citing violations of the principle of equal treatment.

On July 15, the Riigikogu decided not to pass the law without amendments.

The bill had received 374 amendment proposals, which the finance committee consolidated into 30 amendments, adding three more of its own.

The bill had proven controversial in and of itself, and protests had been held in front of the Rigiikogu, though primarily orchestrated by opposition parties.

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