Inquiry Regarding the Impact of Car Tax on Families with Children (No. 705)
Session: 15th Riigikogu, 5th session, plenary sitting
Date: 2025-03-17 18:33
Participating Politicians:
Total Speeches: 56
Membership: 15
Agenda Duration: 56m
AI Summaries: 56/56 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The second agenda item focused on a question posed to the Riigikogu regarding the impact of the car tax on families with children. Presenters Riina Solman, Jaanus Karilaiu, Helir-Valdor Seeder, Priit Sibula, and Andres Metsoja highlighted the deepening demographic crisis and the alleged burden of the car tax on the financial security of large families, rural areas, and families comprised of older parents. During the discussion, the need for differentiated benefits and support was emphasized, and there was consideration of whether government measures could compensate for the negative impact and whether the current tax increases would lead to a decline in birth rates.
Responses noted that tax revenue is necessary to finance public services and that the tax burden in Estonia falls between European levels. The Prime Minister then presented a plan and promises of tax reductions and social support measures, including the elimination of corporate profit tax, the elimination of income tax from the first euro, and an increase in the income tax-free minimum to increase family incomes. Questions of constitutionality were raised during the discussion, along with the need for differentiation for families with many children and people with disabilities—opinions that the initial differentiations were challenged in court—were confirmed and influenced by court rulings and ombudsman observations. Allegedly, no final legislative decision was made on the agenda, and the discussion will continue in subsequent stages and at the level of committees, where more balanced solutions are sought.
Decisions Made 1
The current agenda does not involve a final legislative decision; discussion will continue, and further steps and solutions regarding potential exemptions, compensation, or additional tax allowances will be determined in subsequent stages of committees and procedures, in accordance with cooperation between the Riigikogu and the government.
Most Active Speaker
Anastassia Kovalenko-Kõlvart (Centre Party) was the most active speaker on this agenda item: she presented and discussed in several speeches and focused on emphasising constitutional principles and the specific needs of families with children and people with disabilities. Her position can be described as "other" – neither left nor right wing, as she represents the democratically centrist party (Centre Party) in a coalition and delivered a significant speech of responsibility regarding the relationship between the coalition and the opposition.
Esimees Lauri Hussar
AI Summary
The topic of this agenda item is the parliamentary inquiry submitted on January 20 concerning the impact of motor vehicle tax on families with children, which was submitted by Riina Solman, Jaanus Karilaiu, Helir-Valdor Seedri, Priit Sibula and Andres Metsoja, and Riina Solman will present the inquiry.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman criticizes the government for the worsening of the demographic crisis and for the cutbacks to the tax burden and support mechanisms affecting large families, and she presents five questions to the prime minister about the impact of the car tax.
Esimees Lauri Hussar
AI Summary
The Speaker thanks and informs that, in order to answer the interpellation, the Riigikogu's speaking chair is requested to be returned to Prime Minister Kristen Michal.
Peaminister Kristen Michal
AI Summary
The government says that the impact of the car tax on families with children is moderate compared to extensive family benefits, because the support allocated to families is about 1 billion euros per year (roughly 2.2% of GDP), and together with planned tax cuts — eliminating income tax from the first euro and raising the tax-free minimum to 700 euros in 2026 — this will help increase family incomes.
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar thanked the esteemed prime minister, said that there are questions, and invited Anastassia Kovalenko-Kõlvarti.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart said that although the constitution obliges the state to care for both people with disabilities and large families, the special status of the car tax, which applied only to converted cars, created inequality, and the Chancellor of Justice has spoken about the constitutionality of the tax, and she asked whether the coalition would review it and would create distinctions also for people with disabilities and large families.
Peaminister Kristen Michal
AI Summary
Briefly: originally the motor vehicle tax's initial version was to apply tax relief to military vehicles under the same paragraph reference, but it was found to be in conflict with the Constitution, and the Finance Committee is currently discussing it together with the Chancellor of Justice and others and hopes for the best solution.
Esimees Lauri Hussar
AI Summary
The chairman asks Vadim Belobrovtsev to perform.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
Belobrovtsev asks what the state does and how it compensates if the court finds the situation unconstitutional, and whether large families and people with disabilities should receive exemptions, and whether already paid amounts should be reimbursed.
Peaminister Kristen Michal
AI Summary
They explained that when a constitutional dispute arises, the court usually provides guidance, and the legislature together with the executive branch must remedy it in order to reach a constitutionally proper state of affairs.
Esimees Lauri Hussar
AI Summary
The chair asks Rain Epler to come onto the stage.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler asked two questions: whether, in designing the car tax, it was made as unfair as possible for families with children, and who really wanted the car tax—whether you or the Social Democrats—and whether it passed with cross-party support or not.
Esimees Lauri Hussar
AI Summary
The Speaker, Lauri Hussar, asks for a moment, poses two questions, and asks the prime minister for clarification, noting that the microphone briefly went out.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal begins a speech, saying that he probably heard something.
Esimees Lauri Hussar
AI Summary
Chairman Hussar says that you have already heard, and asks you to pose two questions.
Peaminister Kristen Michal
AI Summary
The Prime Minister emphasizes that, in order to fund public services, the state must collect taxes. Estonia's tax burden is lower than the European average, but the state must be maintained, and the car tax isn't his favorite, but it is part of the social agreement.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invited Riina Solman to speak.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman accused the government of hypocrisy, saying that although relief for the car tax is promised, next year the tax will not be lowered and both the corporate profits tax and the income tax will not be enacted into law, which indicates a rise in taxes.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that European security relief measures and loans will allow the adopted taxes to be abolished, speed up the sense of security, and at the same time reduce the tax burden (including corporate profits taxation and income tax from the first euro) and increase the tax-free minimum, so that people have more money – although this has been your party's chicken-deer-type tax burden, which is planned to be eliminated.
Esimees Lauri Hussar
AI Summary
The chairman Lauri Hussar turns to Evelin Poolamets and asks her to speak.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Evelin Poolamets asks whether the car tax will be used to bolster security, what this security tax will yield, and how these taxes fit with the right-wing direction, and what this new government will bring with it.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal announces a right-wing economic policy whose centerpiece is the abolition of the corporate income tax, the raising of the tax-free minimum, and the simplification of the tax system, and keeping the income tax and value-added tax at the 24% level, in order to fund education, culture, and security, and so that economic growth would spread among everyone.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invited Anti Allast to perform.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas calls on the prime minister to learn from experiences in light of the draft motor vehicle tax bill and to introduce exemptions so that families with children living in sparsely populated areas are not treated unfairly and could receive the subsidy.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that the improvement of laws often comes as hindsight, and now there is a plan to reduce the tax burden, including the abolition of the corporate profits tax and the reduction of the personal income tax burden together with the elimination of the tax wedge, and the Ministry of Finance is discussing his proposals with the Chancellor of Justice; more precise information will emerge in a few weeks.
Esimees Lauri Hussar
AI Summary
Speaker Lauri Hussar submits a request: "Mart Helme, please!"
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Mart Helme asked whether a coalition that promises to abolish the car tax and is formed by Isamaa/EKRE or the Centre Party could get through without the Reform Party, or would it remain unborn.
Peaminister Kristen Michal
AI Summary
He noted that Isamaa could join the coalition, and urged them to be bold, because during the negotiations it will become clear what we can do together.
Esimees Lauri Hussar
AI Summary
The chairperson thanks and invites Kert Kingo to take the floor.
Kert Kingo
AI Summary
Kert Kingo accuses the Reform Party government of worsening life in rural areas, pointing to the disappearance of free public transport, the closure of schools, and the ruin of the economy, and emphasizes the importance of the car to take children to school, to go to the store, and to the doctor, and asks how a rural person should cope during the car tax period when there is no work and no nearby services.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that the new government's first steps will focus on increasing people's incomes through tax incentives, including waiving income tax on the first euro of income and increasing the tax-free minimum, so that people have more money in their hands and life and the economy would improve, and further steps are expected in the coming months.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar invites Martin Helmet to speak.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme criticizes the government as Putinist and claims that the dismantling of the security tax increased the tax burden from 33% of GDP to 36%, and that he does not see economic growth or income growth, even though the government is advertising the opposite.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Michal said that the plan is to reduce the tax burden, abolish the corporate profit tax and the first euro of personal income tax, and raise the tax-free minimum to 700 euros by 2026, in order to increase people's incomes and make the tax system fairer, and the government is ready to take the following steps.
Aseesimees Toomas Kivimägi
AI Summary
At the start of the speech, Helle-Moonika Helme was invited onto the stage.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme accuses the government of this: that although a reduction in the tax burden is promised, new taxes are being introduced one after another and existing ones are raised, and she compares their actions to an anecdote in which an official adds animals to a family in a cramped apartment to show there is room — five steps forward and one back.
Peaminister Kristen Michal
AI Summary
Prime Minister Kristen Mikkal confirmed that security is the government's top priority and that defence spending should be accelerated within European rules so that deficits are not increased, and the abolition of taxes from the first euro together with the abolition of corporate profit tax and the rise of the tax-free minimum will help secure families' financial future and Estonia's economic growth.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi said that in this format there is only one question for Mart Helme, thanked the prime minister and announced the start of negotiations, asking Riina Solman, as the representative of the inquirers, to begin.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman criticizes the impact of the car tax on families with children and provides an example: a family with six children was charged 875 euros in car tax, and almost two months’ worth of the large-family allowance was taken, and she calls on the government to review its tax policy so that it would be fairer and would better support families.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman, Toomas Kivimägi, asked for three more minutes.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman emphasizes that the impact of the car tax on large families and on people living in rural areas is very large, and Estonia's solution lies in need-based, targeted subsidies and in increased support from the birth of the third child, which has proven to increase birth rates, not in a universal, one-size-fits-all tax policy.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Kivimägi thanks Anastassia Kovalenko-Kõlvarti, notes her request for extra time and confirms that she will be given eight minutes as usual.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart claims that the car tax is unfair and unconstitutional, and the Centre Party is fighting its abolition in both the Riigikogu and in court, and is planning compensation in Tallinn for families with children and for people with disabilities.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi thanked all those present.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart promises to abolish the car tax and confirms that this abolition will take place in 2027 after taking power following the elections.
Aseesimees Toomas Kivimägi
AI Summary
Now it's Rain Epler's turn, and he is as rational as ever.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler thanks the chairman of the meeting, asks for a little extra time just in case, and at the same time promises to give it a try.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi just gave a hint and mentioned eight minutes.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler thinks that it will go down, but then he won't have to interrupt.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi states that the speech lasts eight minutes.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler criticizes the government's low rating, calls on the prime minister to step down, promises early elections and the abolition of the car tax, and claims that this tax is cynically aimed at large families and people in rural areas.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanked and noted that the compliment on rationality was appropriate, but on other questions he does not take a position and asked Vadim Belobrovtsev.
Vadim Belobrovtsev
Profiling Eesti Keskerakonna fraktsioonAI Summary
They emphasize the demographic context of large families and the inequality of the car tax bill, noting that the idea of exemptions (three children – 50%, four or more – 75%) was proposed by the opposition, but the coalition pushed it through and it is unconstitutional, and express hope that changes will come and the car tax will disappear when the Centre Party comes to power, improving the lives of large families and people with disabilities.
Aseesimees Toomas Kivimägi
AI Summary
The vice-chairman Toomas Kivimägi thanks the participants for using their time efficiently and announces that the negotiations will be concluded by the prime minister, who will provide feedback on what was discussed above.
Peaminister Kristen Michal
AI Summary
The prime minister confirmed that the initial decisions, especially tax cuts and the rise of the tax-free minimum to 700 euros, are encouraging and deserve broader support than from the coalition alone, and he promised the abolition of a chicken-deer-type tax gravy, the authors of which should be sought from Isamaa.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks the prime minister and announces that the consideration of the second item on the agenda has been completed.