First Reading of the Draft Act on Amendments to the Motor Vehicle Tax Act (Bill 677 SE)

Session: The 15th Riigikogu, 6th Session, Plenary Sitting

Date: 2025-10-06 20:40

Total Speeches: 41

Membership: 15

Agenda Duration: 42m

AI Summaries: 41/41 Speeches (100.0%)

Analysis: Structured Analysis

Politicians Speaking Time

Politicians

Analysis

Summary

The Riigikogu debated the first reading of Draft Act 677 SE on Amendments to the Motor Vehicle Tax Act, initiated by the Finance Committee. The bill was presented by the Chairman of the Finance Committee, Annely Akkermann. The impetus for initiating the draft act stemmed from the proposals made by the Chancellor of Justice on February 26, aimed at bringing the Motor Vehicle Tax Act and the Traffic Act into compliance with the Constitution. The substance of the draft act focuses on establishing grounds for shortening the taxation period in cases where a vehicle is removed from the traffic register or is declared wanted due to theft. This amendment is necessary so that the Tax and Customs Board can make corrections to the second tax notice before the payment deadline of December 15.

During the debate, the opposition (Social Democrats, Centre Party, Isamaa) sharply criticized the government's approach, calling it "cutting the tail off bit by bit." They questioned why all the shortcomings of the law were not being addressed simultaneously, such as the lack of a regional component, the unfair registration fee, and the absence of special provisions for disabled people. Anastassia Kovalenko-Kõlvart and Anti Allas emphasized that the law remains in conflict with the Constitution even after cosmetic changes, particularly due to the unequal treatment of disabled people. Akkermann defended the committee's pace, explaining that they are dealing with the most urgent constitutional infringement, and other topics, such as the support system for disabled people, require the separate and more thorough preparation of a draft act. Aivar Kokk called for the complete abolition of the car tax, citing its failure and the state's wasteful budget policy.

Decisions Made 2
Collective Decision

The first reading of Draft Act 677 SE was concluded.

Collective Decision

The deadline for the submission of amendments was set for October 20, 2024, at 5:15 PM.

Most Active Speaker
Annely Akkermann
Annely Akkermann

Eesti Reformierakonna fraktsioon

Annely Akkermann, Chairwoman of the Finance Committee, was the most active speaker, presenting the bill and answering numerous questions from the opposition. Her position was listed as other (representative of the leading committee).

Aseesimees Toomas Kivimägi
20:40:51
AI Summary

Deputy Speaker Toomas Kivimägi concluded the deliberation of the third agenda item and introduced the fourth, which was the first reading of Bill 677 SE, the draft Act amending the Motor Vehicle Tax Act, initiated by the Finance Committee, requesting Committee Chairman Annely Akkermann to the Riigikogu rostrum for the presentation.

Annely Akkermann
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioon
20:41:12
AI Summary

Annely Akkermann gave an overview of the draft amendment to the Motor Vehicle Tax Act (No. 677), which was initiated by the Finance Committee at the proposal of the Chancellor of Justice in order to bring the law into compliance with the Constitution. The main substance of the draft is to create a basis for shortening the taxation period in cases where the vehicle is removed from the traffic register or is temporarily declared wanted due to theft, and the committee makes a consensus proposal to conclude the first reading.

Aseesimees Toomas Kivimägi
20:47:02
AI Summary

Deputy Chairman Toomas Kivimägi posed a rhetorical question to confirm the definitive nature of the situation at hand.

Annely Akkermann
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioon
20:47:04
AI Summary

Annely Akkermann stated briefly that her presentation or address regarding the draft bill under consideration was concluded and she had nothing further to add.

Aseesimees Toomas Kivimägi
20:47:07
AI Summary

Deputy Speaker Toomas Kivimägi thanked the speaker and then gave the floor to Anti Allas to ask a question.

Anti Allas
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
20:47:10
AI Summary

Anti Allas criticizes the car tax bill, emphasizing that, in addition to constitutional conflicts, it urgently needs amendments to ensure fairness and sensibility, citing, for example, the absence of a regional component and the necessity of reviewing the registration fee, and questions whether the resolution of these shortcomings is expected during subsequent readings.

Annely Akkermann
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioon
20:47:55
AI Summary

Annely Akkermann explained that a large number of amendments have been received regarding the draft Motor Vehicle Tax Act (including from associations and the Chancellor of Justice), but it was currently decided to proceed only with the most essential matters, resolving the direct infringement of the constitution. This is because other topics ( such as the reimbursement of the registration fee in the event of insurance claims) require more time and will be drafted as a separate bill. The law will enter into force on January 1, 2025, and allows for the correction of the annual fee mistakenly set too high for destroyed or stolen vehicles.

Aseesimees Toomas Kivimägi
20:50:05
AI Summary

Deputy Chairman Toomas Kivimägi noted the increase in the number of questions and subsequently gave the floor to Peeter Ernits.

Peeter Ernits
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
20:50:08
AI Summary

Peeter Ernits sharply criticizes the ruling coalition, arguing that they only start looking for sensible solutions and "come to their senses" after the President or the Chancellor of Justice has specifically highlighted the mistake for them.

Annely Akkermann
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioon
20:50:41
AI Summary

Annely Akkermann emphasizes that the differing opinions and discussions among legal experts during the legislative process are not insignificant; rather, they reflect various schools of thought and constitute a crucial system of democratic oversight layers, which involves the Ministry of Finance, the legal experts of the Riigikogu (Parliament), the President's legal advisor, and, if necessary, the Chancellor of Justice or the Supreme Court.

Aseesimees Toomas Kivimägi
20:51:24
AI Summary

Deputy Chairman Toomas Kivimägi gave the floor to Anti Allas as the next speaker.

Anti Allas
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
20:51:26
AI Summary

Anti Allas emphasizes that clear shortcomings should be resolved quickly within the framework of bills already before the Riigikogu, rather than dragging out the process, and asks the coalition for a timetable for returning to these essential changes, should the Social Democrats' proposals fail to gain support due to opposition.

Annely Akkermann
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioon
20:52:04
AI Summary

Annely Akkermann confirmed that the Ministry of Finance is working on a draft bill aimed at quickly resolving the potentially unconstitutional situation related to correcting tax notices, in order to avoid further delay for those needing assistance. It will be submitted to the Riigikogu as soon as it is ready.

Aseesimees Toomas Kivimägi
20:52:32
AI Summary

Following a brief introduction, Deputy Chairman Toomas Kivimägi Priit Sibul was invited to the speaker’s stand to deliver his presentation.

20:52:34
AI Summary

Priit Sibul questioned the speed and appropriateness of the bill's processing in the Finance Committee, asking the rapporteur whether the current pace of handling the matter—which was originally raised by the Chancellor of Justice in early spring—is truly fast enough and pertinent.

Annely Akkermann
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioon
20:52:54
AI Summary

Annely Akkermann from the Finance Committee emphasizes that despite the enormous workload, which includes a quarter of all Riigikogu bills and requires numerous additional sittings, they will manage to enact the bill under consideration exactly on time, before the December 15 payment deadline. This confirms that the committee is moving at a perfectly suitable pace.

Aseesimees Toomas Kivimägi
20:54:06
AI Summary

Deputy Speaker Toomas Kivimägi gave the floor to Helmen Kütt, asking her to come to the podium.

Helmen Kütt
Helmen Kütt
Profiling Sotsiaaldemokraatliku Erakonna fraktsioon
20:54:07
AI Summary

Helmen Kütt expresses surprise that the necessity, raised by the Chancellor of Justice back in February, to bring the law into compliance with the constitution was addressed in separate draft bills, instead of being handled concurrently with, for example, the motor vehicle tax bill. She also critically asks when the committee plans to discuss the issue of people with disabilities.

Annely Akkermann
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioon
20:55:14
AI Summary

Annely Akkermann confirmed that the involvement of stakeholders, including the Chamber of People with Disabilities, in the proceedings of the draft bill has been ensured, and the corresponding hearing will definitely take place, although its exact date is currently still unknown.

Aseesimees Toomas Kivimägi
20:55:34
AI Summary

Deputy Speaker Toomas Kivimägi addressed his colleague Peeter Ernits to clarify the number of times he had taken the floor, expressing doubt as to whether the number 3 displayed on the screen was correct, and suggesting that it should actually be 2 instead.

Peeter Ernits
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
20:55:40
AI Summary

Peeter Ernits briefly and uncertainly expressed confusion over the specific number, doubting whether it was three or seven.

Aseesimees Toomas Kivimägi
20:55:49
AI Summary

Deputy Speaker Toomas Kivimägi noted the absence of two persons during the session and subsequently gave the floor to Peeter Ernits to ask a question.

Peeter Ernits
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
20:55:52
AI Summary

Peeter Ernits sharply criticizes the government's legislative process, questioning whether it is sensible to adopt laws that generate massive public opposition only to then start offering mitigating measures. He considers such a waste of resources, time, and nerves counterproductive, recommending thorough consideration before making the final cut.

Aseesimees Toomas Kivimägi
20:56:55
AI Summary

Deputy Chairman Toomas Kivimägi concluded his speech with a brief and heartfelt thank you, expressing sincere gratitude to the audience.

Peeter Ernits
Peeter Ernits
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
20:56:58
AI Summary

Peeter Ernits briefly confirmed his agreement or understanding, and then expressed his gratitude.

Annely Akkermann
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioon
20:57:00
AI Summary

Annely Akkermann emphasizes that the continuous development and adaptation of legislation is the daily work of the Riigikogu, citing as an example the frequent amendments to the Income Tax Act and the Value-Added Tax Act, and explains that the community of people with disabilities was not excluded from the motor vehicle tax discussions, as the original tax exemption was replaced by an increase in social benefits amounting to 14 million euros.

Aseesimees Toomas Kivimägi
20:58:41
AI Summary

Deputy Speaker Toomas Kivimägi raised a procedural point of order, drawing attention to a discrepancy in the number of questions posed by Peeter Ernits (the system indicated three, although the speaker estimated it was only the second). He requested that the error be verified against the official transcript before subsequently yielding the floor to Anastassia Kovalenko-Kõlvart.

20:58:58
AI Summary

Anastassia Kovalenko-Kõlvart is criticizing the proposed car tax bill, noting that although the president vetoed the previous version for placing disabled people in an unequal situation, the current solution will also remain in conflict with the constitution unless sufficient and uniform special provisions are guaranteed for disabled individuals, as forcing people who are under the state's special care to give up their vehicles is unacceptable.

Annely Akkermann
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioon
21:00:07
AI Summary

Annely Akkermann clarifies that the Chancellor of Justice did not necessarily deem the support system for people with disabilities unconstitutional upon the introduction of the motor vehicle tax. Instead, the Chancellor recommended in supplementary remarks that exceptions be considered for large families and people with disabilities, simultaneously confirming that the Riigikogu (Parliament) has indeed responded by directing approximately 14 million euros from the motor vehicle tax revenue toward benefits and compensation for people with disabilities.

Aseesimees Toomas Kivimägi
21:02:13
AI Summary

Deputy Chairman Toomas Kivimägi gave the floor to Vladimir Arhipov, inviting him to deliver his presentation.

Vladimir Arhipov
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:02:14
AI Summary

Vladimir Arhipov points out that the motor vehicle tax is an extremely sensitive issue for the people of Estonia, and, regarding the coalition partner's sudden proposal to scrap the tax, he asks whether this matter was even discussed in the committee beforehand.

Annely Akkermann
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioon
21:02:39
AI Summary

Annely Akkermann announced that the issue or topic in question was not discussed in the Finance Committee.

Aseesimees Toomas Kivimägi
21:02:43
AI Summary

Deputy Speaker Toomas Kivimägi thanked the rapporteur, concluded the Q&A session, opened the debate, and granted Anti Allas, the representative of the Social Democratic Party faction, the eight minutes of speaking time he had requested.

Anti Allas
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
21:03:08
AI Summary

Anti Allas is criticizing the necessity of implementing the car tax, which was introduced to cover the costs of abolishing the ‘tax hump’ promised by the Reform Party. He views this as an unnecessary handout to high-earners. However, the Social Democrats (SDE) are prepared to consider a reasonable car tax given the state’s heavy debt load and underfunding in key areas (defense, roads, and special care services). The SDE faction is nevertheless strongly demanding that the tax be made equitable by including a regional component, significantly lowering the registration fee, and considering exemptions or relief for people with disabilities and pensioners, thereby preventing the disproportionate taxation of average families and those who are self-sufficient but require support.

Aseesimees Toomas Kivimägi
21:08:35
AI Summary

Deputy Speaker Toomas Kivimägi. Anastassia Kovalenko-Kõlvart, representing the Estonian Centre Party faction, thanked those present and requested an additional eight minutes for her presentation.

21:08:50
AI Summary

Anastassia Kovalenko-Kõlvart sharply criticizes the tax chaos and instability created by the government, labeling it a "tax circus" where taxes are spontaneously juggled. She particularly slams the car tax, deeming it an unconstitutional "package mess" and a form of quadruple taxation that is unfair to families with children and people with disabilities, whose specific needs were not considered. The speaker accuses the government of taking populist steps ahead of elections while simultaneously cutting previous family benefits. She promises that the Centre Party will continue to fight the car tax in court and will completely repeal it if they win the next elections and come to power.

Aseesimees Toomas Kivimägi
21:15:19
AI Summary

Deputy Speaker Toomas Kivimägi offered his thanks and subsequently gave the floor to Aivar Kokk, the representative of the Isamaa faction.

Aivar Kokk
Aivar Kokk
Profiling Isamaa fraktsioon
21:15:29
AI Summary

Aivar Kokk sharply criticizes the government's claim of a lack of money, pointing to billions in unused, carried-over funds every year. He also blames the coalition for supporting the motor vehicle tax and for allowing people who don't understand economics to run the country, which has resulted in damaging tax hikes and a failed energy policy.

Aseesimees Toomas Kivimägi
21:20:08
AI Summary

Deputy Speaker Toomas Kivimägi made a brief procedural note, requesting three additional minutes be added to the speaking time.

Aivar Kokk
Aivar Kokk
Profiling Isamaa fraktsioon
21:20:10
AI Summary

Aivar Kokk, representing the Isamaa Party, sharply criticizes the government’s motor vehicle tax, calling it a failure and demanding its immediate repeal, arguing that it disproportionately burdens both rural and urban residents for whom public transport is insufficient. To cover the cost of abolishing the tax, he proposes eliminating the income tax exemption for high earners, promising that Isamaa will repeal this tax by 2027 at the latest.

Aseesimees Toomas Kivimägi
21:23:16
AI Summary

Deputy Speaker Toomas Kivimägi closed the debate, noting that Anti's delayed rebuttal would no longer be taken into account, concluded the first reading of Draft Bill 677 SE upon the proposal of the lead committee, set the deadline for submitting amendments as October 20th at 17:15, declared the proceedings on the fourth agenda item concluded, and finally commended the attentive audience in the gallery.