Madise: An affordable car tax rate requires careful consideration | Estonia

Chancellor Ülle Madise does not rule out going to the Supreme Court on the issue of the government’s proposed car tax, as it may happen that with a certain tax rate some members of society will no longer be able to afford the car they need.

Madise in his interview with Postimehe positively highlighted that during the drafting of the law on car taxes some specific tax rates are proposed, but according to him it is bad if the first proposal is the final decision, which is carried out simply out of trust.

“When it comes to taxation, the National Assembly has a wide range of options, but at least the car tax issue should go through the Supreme Court in case the tax rate remains so high that, for example, people who live in the countryside or large families or people with disabilities are forced to give up an essential car”, said Madise, confirming the fact that the Estonian Constitution strongly protects private property.

According to Madis, if it becomes necessary for the Chancellor of Justice to address the Supreme Court on this issue, this is his official duty and the natural course of state life.

“However, I would not like to offer a possibility, because I sincerely hope that the restoration of the normal working capacity of the Riigikogu is possible, and even then we will carefully evaluate what is the convenient tax rate for cars in Estonia.”

At the end of November, Finance Minister Mart Võrklaev (Reform Party) presented a new bill on car tax to the government, but the final text of the bill is not yet ready because there is no consensus on this issue among coalition partners. Therefore the bill has not yet been discussed in the government and the discussions have been limited to the coalition council and the working group on motor vehicle taxation.

Estonia 200, for example, wants an exception for large families, disabled people and vehicles whose registration has been temporarily suspended. The Social Democrats also want an exception for disabled people and for vehicles whose registration has been temporarily suspended.

However, the Reform Party is skeptical about car tax exemptions and would like to mitigate the impact of the car tax by increasing support for people with profound disabilities.

2024-01-04 04:52:00
madise-an-affordable-car-tax-rate-requires-careful-consideration-estonia

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