Center party head asks justice chancellor to challenge car tax in top court
Mihhail Kõlvart, head of the opposition Center Party, has sent a letter to Chancellor of Justice Ülle Madise, asking her to turn to the Supreme Court to have the Motor Vehicle Tax Act repealed because it clashes with the constitution.
According to Mihhail Kõlvart, the chancellor of justice, under the Constitution, can first ask the Riigikogu to bring the law in line with the Constitution. If this is not done, the chancellor can then turn to the Supreme Court with a proposal to declare the Motor Vehicle Tax Act invalid, he added.
"The car tax is being introduced at a time when taxpayers are already burdened, and the rate of inflation continues to rise. Therefore, the government should conduct a thorough analysis and consider the bigger picture before implementing any tax increases," Kõlvart said. "Unfortunately, there is a growing trend of legislative initiatives increasingly infringing upon or directly conflicting with the fundamental principles derived from the constitution. Article 10 of the Estonian Constitution establishes the principle of the welfare state, which in turn means that public authority should take care of society's vulnerable members and ensure that no one is left in need. The car tax increases the risk of poverty in society."
Kõlvart stated that after the president refused to promulgate the draft law, citing unequal treatment of people with disabilities, the coalition decided to make the bill even more unfair. "All tax exemptions were abandoned and replaced with minimal subsidies. Not only do these subsidies fail to cover the costs arising from the car tax, but people with disabilities have been waiting for years for support to cover other expenses, which now might not materialize at all. Moreover, such a transfer of money from one [public] pocket to another creates an unreasonably high amount of additional costs for the state," Kõlvart explained.
The Center Party leader added that, unfortunately, no tax exemptions have been provided for large families and people living in rural areas, who rely on their vehicles for daily use.
"Meanwhile, the government is talking about possible cuts to child benefits, schools in rural areas are being closed and investments in roads are decreasing," Kõlvart added.
Kõlvart also pointed out that the legislative process in the Riigikogu for the draft law was unconstitutional.
"The Center Party, together with interest groups, prepared substantial amendments, but it was impossible to vote on them because the coalition bundled them together. By limiting the rights of the parliamentary minority, they are primarily restricting society's ability to participate in shaping broad-based tax changes, effectively leaving interests unprotected. This contradicts the constitution and poses a threat to democracy," Kõlvart explained.
The president promulgated the amended car tax law on Friday. It will take effect on January 1.
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Editor: Marcus Turovski