President promulgates vehicle tax law
President Alar Karis gave his approval on Friday to the Motor Vehicle Tax Act, which he had previously refused to promulgate in its earlier version.
The new law in Estonia establishes a motor vehicle tax, which consists of two parts. Vehicle owners will be required to pay an annual tax for vehicles registered in the Traffic Register, and additionally, a motor vehicle registration fee must be paid when registering passenger cars and vans in the Traffic Register.
After being sent back by the president, the law was amended in the Riigikogu to include targeted support measures, replacing the previously planned tax exemptions for owners of vehicles modified or adapted for people with disabilities
The Riigikogu passed the motor vehicle tax again in an extraordinary session at the end of July, with 54 votes in favor. President Alar Karis had initially refused to promulgate the law due to concerns about unequal treatment of people with disabilities.
The opposition has argued that even in its amended form, the adoption of the motor vehicle tax is illegal, as tax changes are required by law to be announced six months in advance.
"If this law is to take effect on January 1, it's clear that this requirement has been violated. Additionally, the rules of procedure have been breached, which has become common practice – the current coalition makes and alters amendments as they please," said Martin Helme, chairman of EKRE's Riigikogu group.
Annely Akkermann (Reform), chair of the Riigikogu Finance Committee, argued that the motor vehicle tax is a special case.
"It is indeed stipulated in the Taxation Act that such changes should generally take effect six months in advance, but the vehicle tax is a special case. There are few tax or legislative changes that are discussed a year in advance," said Akkermann.
According to the latest amendments to the bill, instead of the previously planned tax exemptions for owners of vehicles modified or adapted for people with disabilities, additional support measures will be provided.
The opposition gathered a record number of digital signatures against the motor vehicle tax. Both Kaja Kallas' government and the subsequent administration led by Kristen Michal view the motor vehicle tax as a necessary additional revenue source to address the budget deficit.
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Editor: Marcus Turovski
