Families with children are set to see a reduction in their car tax of €100 per child per year under the measure, which was announced by the government earlier this week. The policy will also be extended to wheelchair-accessible vehicles for people with disabilities.

However, no additional details were given at the time, and politicians did not know the cost of the discount.

The car tax, introduced this year, was expected to generate around €100 million each year.

Ministry of Finance Deputy Secretary General Evelyn Liivamägi told ERR the details are still not known.

"We have prepared preliminary quick estimates based on statistics. More detailed queries and calculations, linking actual registry data with specific tax obligations and eligibility for relief, are still in progress. This takes time, as several important details need to be worked out and not all data can be immediately connected," she explained.

However, the ministry knows that there are just under 600,000 households in Estonia, of which about 130,000 – approximately a quarter — have both cars and children. Liivamägi said there are just over 200,000 children who could qualify for the car tax discount.

"In very broad terms, this would mean refunding nearly a quarter of the annual car tax, from which we expect about €100 million this year," said the deputy secretary general.

This would see the state raise €75 million in revenue from the tax each year, and return roughly €25 million.

Liivamägi reiterated that this is a preliminary estimate.

The government said money raised from the tax will be used for road construction and maintenance.

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