Third Reading of the Motor Vehicle Tax Bill (364 SE)
Session: 15th Estonian Parliament, 3rd session, plenary session.
Date: 2024-06-12 19:10
Participating Politicians:
Total Speeches: 21
Membership: 15
Agenda Duration: 39m
AI Summaries: 21/21 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
Under the third item on the agenda, the third reading of Draft Act 364 of the Motor Vehicle Tax Law, initiated by the Government of the Republic, took place. The aim of the draft act is to combine the characteristics of a property tax and an environmental tax, steering taxpayers toward using less polluting and lighter vehicles, while simultaneously expanding the scope of taxation and enhancing the state budget. The debate reflected deep disagreements regarding tax fairness, the burden imposed, and economic implications: the opposition pointed out that the tax's impact on people living in rural areas, families, and small entrepreneurs could be too severe, and that the procedure might warrant judicial review. The coalition deemed it necessary to make certain amendments to alleviate the burden and respond to the European Union's remarks and stakeholders' proposals, but the central question remained: whether and how the methods and bases of the car tax would be balanced in the name of fairness and economic development.
Decisions Made 1
Bill 364 has been adopted as law. 57 members of the Riigikogu voted in favor, 28 voted against, and 0 abstained.
Most Active Speaker
The most active speaker was Mart Helme (EKRE faction), representing the right wing. He spoke twice, focusing on the issue of tax fairness and the impact on people's pocketbooks, employing strong rhetoric against the coalition's plans.
Aseesimees Toomas Kivimägi
AI Summary
The Parliament moves on to the third item, which is the discussion of the third reading of Bill 364, the Motor Vehicle Tax Act, initiated by the Government of the Republic, and Mart Helme, on behalf of the EKRE faction, requests the opening of the debate.
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Mart Helme said that the car tax plan is an attack on people's property and wallets, and he accuses the coalition and liberals of callousness, promising that accountability will eventually come to light.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi asks for three additional minutes.
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Mart Helme is calling on people this summer to take a pause for thought and focus on their conscience and critical thinking skills, arguing that the current method of balancing the state budget is devastating to the Estonian people’s standard of living and the economy.
Aseesimees Toomas Kivimägi
AI Summary
The Deputy Chairman thanked the speaker and gave the floor to Andrei Korobeinik on behalf of the faction.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
Andrei Korobeinik criticizes the car tax bill as a tax that deepens the economic recession, burdens those living in the countryside, large families, and people with disabilities, takes away free bus rides, and may force families to move to Tallinn. He also vows not to proclaim the law and promises to appeal to the court for an assessment of its constitutionality.
Aseesimees Toomas Kivimägi
AI Summary
He thanks the assembly and, on behalf of the Isamaa faction, gives the floor to Aivar Kokk.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk criticizes the coalition's tax policy, claiming that the car tax will be immediately followed by a land tax and the taxation of homes and property, which will impose economic hardship on residents and businesses and degrade public transport. He further emphasizes the necessity of ensuring legality and appealing to the Supreme Court, involving both the President and the Chancellor of Justice.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi asks for three more minutes.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk said that the tax hikes planned by the coalition and a larger income tax exemption for higher earners will not benefit the economy, and he called for halting the tax package slated for next year, ensuring tax stability, and giving people and businesses breathing room.
Aseesimees Toomas Kivimägi
AI Summary
Annely Akkermann is speaking on behalf of the Reform Party.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The core of this presentation concerns the objective of the motor vehicle tax amendments: namely, to improve state budget financing while adhering to the remarks made by the European Commission and the proposals put forward by interest groups. This involves lowering tax rates and easing conditions, all without increasing the overall tax burden.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi asked for three more minutes.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann notes that the motor vehicle tax amendments bring relief to taxpayers by lowering the registration fee, applying an age coefficient, and reducing the annual tax for all M and N category vehicles, while also allowing the registration fee to be refunded when taking a vehicle up to 10 years old abroad. She further explains that the registration fee is not cumulative. Additionally, she presents three ideas: a tax exemption for old cars with black license plates, funding for sparsely populated municipalities through the equalization fund, and higher compensation for employees using their personal cars.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Uibo represents the Eesti 200 faction and requests the floor.
Toomas Uibo
Profiling Eesti 200 fraktsioonAI Summary
Toomas Uibo said that although the car tax is unpleasant, it must be fairly adjusted both to increase the state's revenue base and to function as an environmental tax. This change will be implemented in the autumn, along with amendments to the Traffic Act regarding scrap vehicles, and Eesti 200 is waiting for its partners to fulfill their promises.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi declares the debates concluded, approves the Steering Committee's proposal to hold the final vote on Bill 364, and asks Andrei Korobeinik if he has any procedural motions.
Andrei Korobeinik
Profiling Eesti Keskerakonna fraktsioonAI Summary
As the Deputy Chairman of the Finance Committee, he said he would take a five-minute break to consider the procedure in greater detail.
Aseesimees Toomas Kivimägi
AI Summary
He notes that the deputy chairman of the commission truly does not have such authority, but since the final decision has not yet been made, a five-minute recess will be taken.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi announces the end of the recess and puts Bill 364, the government-initiated motor vehicle tax act draft, up for the final vote, requesting that members take a position and cast their votes.
Aseesimees Toomas Kivimägi
AI Summary
Bill 364 was adopted as law: 57 votes for, 28 against, and 0 abstentions.