The proposal will align the Motor Vehicle Tax Act and the Traffic Act with the Constitution, as, she said, these could lead to vehicles being taxed that are off-road, not in use, or destroyed.

According to Madise, the two acts are unconstitutional as they lack provisions for the destruction of property or removal from use.

She also noted that the Traffic Act lacks provisions on the administration of registration fees.

Riigikogu Speaker Lauri Hussar (Eesti 200) tasked the finance committee with initiating a bill to bring the two acts into conformity with the Constitution, the Riigikogu announced.

Madise's proposal stated that vehicle tax must be paid for the remainder of the year if a car is registered, even if the vehicle is destroyed or no longer exists. The registration fee is not refundable if property is destroyed but is refundable if the vehicle is taken abroad.

"In both cases, the taxation of destroyed property could in practice be avoided, as similar calculations are made when taxing a vehicle registered mid-year or when a vehicle is taken abroad," Madise noted.

Ahead of the vote, MPs Andrei Korobeinik (Center), Rene Kokk (EKRE), Urmas Reinsalu (Isamaa), Varro Vooglaid (EKRE), Peeter Ernits (ERK), Kalle Grünthal (Independent), and Tanel Kiik (SDE) spoke on the topic.

The motor vehicle tax entered into effect at the start of this year.

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