Home BusinessFinancial Finance minister: Draft car tax bill more focused on environmental impact | News

Finance minister: Draft car tax bill more focused on environmental impact | News

by Paul Morgan

The Estonian government is set to make the draft car tax bill public and share more detailed information about the proposals and amendments that were made. The Minister of Finance has stated that the signature will likely come on Monday, indicating progress in the implementation of the new tax.

One of the key changes in the latest update to the draft relates to the way the tax will be applied. There was a desire to make the tax more environmentally oriented, so the government has taken a stronger position on CO2 emissions. Under the new tax system, if a car emits CO2, the tax will increase at a faster rate. Additionally, a weight component has been introduced, meaning that larger and heavier cars above a certain threshold will have to pay more.

The government has also taken into account weight differences and vehicle engine types when designing the tax system. The weight limits at which the tax starts to increase are different for gasoline or diesel cars due to their smaller weight, as explained by Võrklaev, the official responsible for the tax. It is important to note that the payment for the tax will come from both components – from the registration and the annual tax.

Addressing concerns about the age of vehicles, the finance minister stated that the tax will take into account the age of vehicles. It is understood that not everyone will be able to afford new cars immediately, so the government aims to implement a tax system that is fair and considerate of different circumstances.

The draft car tax bill also includes an exemption for vehicles that have been adapted to better meet the needs of people with disabilities. This exemption is an important aspect of the tax system, recognizing the importance of accessibility and inclusivity.

Overall, the Estonian government’s draft car tax bill aims to create a tax system that is environmentally friendly, fair, and considerate of different circumstances. By taking into account CO2 emissions, vehicle weight, engine types, age of vehicles, and adaptations for people with disabilities, the government is working towards a comprehensive tax system. The upcoming public release of the draft and the consultation period of three weeks will allow for further input and feedback from stakeholders, ensuring that the final version of the car tax bill is well-informed and effective.

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