Automaks
Session: 15th Riigikogu, 6th sitting, press briefing
Date: 2025-09-10 15:16
Participating Politicians:
Total Speeches: 23
Membership: 15
Agenda Duration: 15m
AI Summaries: 23/23 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
Riigikogu member Vadim Belobrovtsev submitted an inquiry to Prime Minister Kristen Michal regarding the car tax, criticizing the confusion and uncertainty surrounding the government's policy. Belobrovtsev (Centre Party) emphasized that politicians from the coalition parties had spoken one day about abolishing the tax (referencing Kristina Kallas's proposal), but only cosmetic changes have followed. He highlighted that the car sales market in Estonia has drastically fallen (over 40% compared to Latvia and Lithuania) and car service centers are forced to lay off employees. He demanded a clear answer from the Prime Minister on whether the car tax will be abolished.
Prime Minister Michal confirmed that the coalition has agreed on amendments to the car tax concerning benefits for families with children (€100 tax reduction for every minor child). This amendment has reached the Riigikogu as a draft bill and should alleviate the burden on many families. Additionally, there are plans to lower the taxation rate for M and N category small vans. Michal also emphasized that the entire revenue collected from the annual tax will be directed towards roads (four-lane and local roads). Responding to the question of the tax's complete abolition, Michal referred to budgetary constraints and the need to ensure defense spending (5% of GDP) and fund the salaries of teachers, police officers, and rescuers. He conceded that the level and design of the tax have caused misunderstandings, but currently, the state budget deficit prevents its complete abolition.
In the subsequent clarifying question, Anastassia Kovalenko-Kõlvart (Centre Party) accused the Prime Minister of creating a "tax circus," highlighting chaotic changes in tax policy (income tax, corporate income tax, temporary/permanent increases). She criticized the benefits for families with children as merely cosmetic, while people with disabilities, pensioners, and rural residents have had their accounts seized due to the car tax. Michal rejected the accusations, explaining the Reform Party's consistent desire for a lower income tax and confirming the planned abolition of the tax hump in 2026, which, according to him, will reduce the tax burden on the middle class.
Decisions Made 1
No decisions were made
Most Active Speaker
Vadim Belobrovtsev (Centre Party) initiated the debate and was an active participant, presenting specific data on the decline of the car market and demanding clarity regarding the future of the car tax. Position: other.
Esimees Lauri Hussar
AI Summary
The Chairman announces that today's second question is addressed to Prime Minister Kristen Michal, and the question will be posed by Riigikogu member Vadim Belobrovtsev. The topic is the motor vehicle tax.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev expresses strong disappointment regarding the confusion surrounding the car tax and the coalition's constantly shifting positions. He emphasizes the necessity of making a clear decision on whether the car tax will be abolished or remain, noting that the ongoing uncertainty has resulted in losses for both the automotive market and the service sector.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev expresses deep concern over the complete confusion surrounding the car tax, criticizing the coalition's contradictory messages and demanding immediate clarification from the prime minister as to whether the tax will be abolished or merely adjusted, as this uncertainty has already led to a drastic decline in new car sales and forced car service centers to lay off staff.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev sharply criticizes the complete mess created by the government surrounding the car tax, noting that despite earlier promises by coalition politicians to abolish the levy, there is still no clarity regarding its future. This uncertainty has led to a drastic decline in sales across the Estonian car market and forced car service centers to make redundancies. Consequently, the speaker is demanding a swift and definitive answer from the Prime Minister on whether the car tax will be permanently scrapped.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal confirmed that the coalition has agreed on significant amendments to the car tax bill, which have already reached the Riigikogu (Parliament). These changes include a 100-euro discount for families for every minor child, a reduction in the tax rate for small commercial vans, and the allocation of the entire annual tax revenue to road construction and repair. He emphasized that these steps will reduce the burden on families with children and improve the condition of the roads.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal confirmed that the vehicle tax bill has reached the Riigikogu, a proposal designed to ease the tax burden on families with children (offering a 100 euro discount for every minor child) and owners of small commercial vans. She stressed that all revenue generated from the annual tax will be channeled directly into the development and improvement of the road network, specifically including the construction of new four-lane highways.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal explained the changes to the car tax, including a 100-euro discount for every minor child, which reduces the taxable rate and will assist the parents of up to 155,000 minor children. He also mentioned the lowering of taxation for M- and N-category commercial vehicles, and the plan to direct the entire collected portion of the car tax towards road construction. Michal stated that the draft bill is currently before the Riigikogu, and discussions are ongoing between the coalition and the opposition within the framework of the budget.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offers his thanks and invites Vadim Belobrovtsev to pose a clarifying question.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Belobrovtsev insists that the motor vehicle tax must be abolished (including exceptions for large families, disabled individuals, rural residents, and pensioners), and calls upon the government and other political parties to implement this proposal, stating that they will certainly support it in the Riigikogu.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev sharply criticizes the current car tax, demanding its complete abolition and stressing that families with children, people with disabilities, rural residents, and pensioners should be exempt from the tax under all circumstances. He also challenges the government, asking what prevents them from scrapping the tax now that the Social Democrats (Sotsid) have left the government and there would be a clear majority for it in the Riigikogu (including with the support of EKRE and Isamaa).
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev is urgently demanding the abolition of the car tax as it currently stands, emphasizing the necessity of exempting families with children, people with disabilities, rural residents, and pensioners from this levy. He is also asking the government what is stopping them from immediately revoking this unpopular tax, while simultaneously promising broad, cross-factional support in the Riigikogu for the proposal to scrap the tax.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Vadim Belobrovtsev is urgently demanding the complete abolition of the motor vehicle tax, having previously supported exemptions for families with children, people with disabilities, and rural residents. Furthermore, he criticizes the government for its inaction, asking what prevents them from canceling the tax when there is already broad-based support for it in the Riigikogu.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal announced that the Centre Faction supports car tax relief for families with children, and stressed that the budget must continue to be kept balanced and achieve at least 5% defense spending. This is made possible by the loosening of European rules and tax revenues, while also taking into account the salary needs of teachers, cultural workers, police officers, and rescuers.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal welcomed the support from the Center faction regarding the car tax relief for families with children. However, he explained that abolishing the tax entirely is not possible due to the budget deficit and the necessary need for fiscal prudence, even though the economy is recovering and the budget situation has improved. He stressed that drafting the state budget is a complex balancing act, where tax revenues are required both to secure defense spending (5% of GDP) and to fund salary increases for teachers, police officers, and others, which is why various interests must be reconciled.
Esimees Lauri Hussar
AI Summary
The Chairman thanks the speaker and gives the floor to Anastassia Kovalenko-Kõlvart, the asker of the supplementary question.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart sharply criticizes the prime minister, accusing the government of creating a "tax circus" instead of ending the "tax festival." She claims that taxes are spontaneously juggled according to approval ratings, citing as examples constant changes to income tax, corporate income tax, and the motor vehicle tax, the latter of which has been suspected of being unconstitutional. The speaker reproaches the government for offering only cosmetic benefits before the elections, while simultaneously having cut support for large families, lowered the ceiling for parental benefits, and raised VAT to 24%. This, she argues, makes food inaccessible for many families. She concludes by asking why a tax circus has been brought into the country.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart is accusing the Prime Minister of creating a "tax circus" instead of ending the promised "tax festival." She points to the government's spontaneous and chaotic tax policy—such as the constant changes to income tax, corporate income tax, and the proposed car tax—which has resulted in constitutional issues and the freezing of people's bank accounts. Furthermore, the speaker criticizes the government for offering only cosmetic concessions right before the elections, all while cutting benefits for large families, lowering the cap on parental benefits, and raising the VAT rate to 24%, consequently leaving disabled people and pensioners struggling financially.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart accuses the Prime Minister and the government of orchestrating a "tax circus," pointing to their spontaneous and inconsistent fiscal policy (such as the constant changes to income tax and car tax, and the rise in VAT), which has led to constitutional issues and the seizure of citizens' bank accounts. Furthermore, she dismisses the government's recent concessions for families with children as merely a cosmetic, pre-election maneuver that neither offsets previous cuts nor genuinely assists families and pensioners who are struggling.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker is accusing the government of pursuing an unstable, promise-driven tax policy that has caused hardship for families, people with disabilities, and the elderly.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal announced that the government will abolish the corporate profit tax and raise the non-taxable income minimum to 700 euros by 2026, emphasizing that the changes affect the middle class and are intended to stimulate the economy in an uncertain world.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal responded to a question, explaining the Reform Party’s tax policy, confirming the abolition of the corporate profit tax, and emphasizing that raising the tax-free minimum income to 700 euros starting in 2026 is a consistent step that eliminates the tax hump created by left-wing parties, which has unfairly burdened the Estonian middle class, with the goal of leaving more money in people’s hands and stimulating the economy in an uncertain world.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal answered questions regarding tax policy, confirming the abolition of the corporate profit tax and the increase of the income tax-free minimum to 700 euros. She emphasized that the Reform Party's goal is to eliminate the tax bulge created by the left-wing parties, which unfairly taxes the middle class, and to stimulate the economy amidst an uncertain global situation.
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar thanks everyone and concludes the consideration of today's second item.