Draft law repealing the Motor Vehicle Tax Act (571 SE) – First Reading
Session: 15th Riigikogu, 5th session, plenary sitting
Date: 2025-04-08 15:30
Participating Politicians:
Total Speeches: 37
Membership: 15
Agenda Duration: 57m
AI Summaries: 37/37 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
The topic concerns the first reading of bill 571, which seeks to declare the Motor Vehicle Tax Act invalid, initiated by the Isamaa faction. The presenter was Member of the Riigikogu Aivar Kokk. The purpose of the bill is to declare the car tax invalid retroactively from January 1st of this year. The discussion centered on the tax system’s burden and the taxes implemented by the government, including the existing motor vehicle tax and fuel excise tax, and their impact on citizens, especially families with children and residents of rural areas. According to the argument, the car tax is unfair and its impact extends to businesses under conditions of the economic crisis. During the discussion, the need for cost-cutting, reducing bureaucracy, and revitalizing the economy was highlighted. In addition, budget surpluses and various investment needs that may be associated with transition money were discussed, and it was noted that the involved funding sources may not be suitable. In conclusion, the discussion involved critical viewpoints from various factions, but the final word is: bill 571 was rejected in the first reading.
Decisions Made 1
Bill 571 was rejected on its first reading. The commission's proposal was adopted collegially: the vote was 47 in favor, 25 against, with 0 abstentions. The bill falls out of the procedure.
Most Active Speaker
The most active speaker was Urmas Reinsalu (Isamaa), who represented the right-wing political direction. He consistently voiced his opposition to the car tax and emphasized the need to form a united front against price increases, and to avoid the overloading effect of the car tax and other taxes. Reinsalu is a well-known politician in Estonia, a member/leader of the Isamaa faction, and his participation was distinguished by an active leadership position in opposition, expressed both through his speeches and through the management of the overall narrative.
Aseesimees Arvo Aller
AI Summary
Let's proceed to today's second item on the agenda — the first reading of Bill No. 571 initiated by the Isamaa faction on declaring the motor vehicle tax unconstitutional. The rapporteur is Riigikogu member Aivar Kokk.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk called on the Riigikogu to retroactively declare the motor vehicle tax invalid as of January 1, accusing the government of breaking promises and emphasizing how unfair it is for families with children, residents of rural areas, and people with disabilities, and he recommended cutting costs, reducing bureaucracy, and investments that would stimulate the economy.
Aseesimees Arvo Aller
AI Summary
Vice-chairman Arvo Aller said that the audience also has questions, and asked Helir-Valdor Seeder to answer.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder raises the question of whether it is cheaper for the state to develop and maintain public transport in sparsely populated areas or to leave money in people's hands so they buy cars and pay for fuel and excise taxes, and whether the government is on the right track when it punishes people with a car tax and acts irrationally.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk said that during the last two coalitions the Estonian economy has declined, and one of the main reasons is the car tax, and free public transport has in rural areas almost completely destroyed private-sector bus traffic and is unfair to those who cannot manage without a personal car.
Aseesimees Arvo Aller
AI Summary
In Arvo Alleri's speech, it was said that the questions have been concluded and thanks have been given, and next the summary of the discussion held in the lead committee will be presented by Mart Võrklaev, a member of the Finance Committee.
Mart Võrklaev
Profiling Eesti Reformierakonna fraktsioonAI Summary
The Finance Committee discussed the draft on March 25, but the initiator's presentation and the discussion did not take place, and the committee decided to reject the draft at its first reading, with 6 members in favor, 3 against, and 0 abstentions. At the same time, the other procedural decisions were taken by consensus.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller asked Helir-Valdor Seeder to pose a question.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
The speaker asks whether there was no substantive discussion in the committee due to the lack of a presentation of the draft proposal, and whether the reason was that everyone understood it or that someone did not understand anything.
Mart Võrklaev
Profiling Eesti Reformierakonna fraktsioonAI Summary
They said that there was no substantive discussion, because the bill's proposer, i.e., the representative of the Isamaa faction, was not present, and therefore there was no point in discussing.
Aseesimees Arvo Aller
AI Summary
The speech concerns inviting Lauri Laatsi onto the stage and the request for him to perform.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats thanks the chair of the meeting and notes that the former Minister of Finance brought a motor vehicle tax bill, which was originally supposed to be an environmental tax to reduce the number of cars, but others saw in it only a Treasury request, and he asks for an explanation of the tax as Estonia's objective.
Mart Võrklaev
Profiling Eesti Reformierakonna fraktsioonAI Summary
This question was not discussed in the committee, and no discussion took place in the committee.
Aseesimees Arvo Aller
AI Summary
The vice-chair Arvo Aller announced that the questions had ended, thanked the attendees, and directed the question to the chair of the meeting, Helir-Valdor Seeder.
Helir-Valdor Seeder
Profiling Isamaa fraktsioonAI Summary
Helir-Valdor Seeder asked the board to ensure that committees operate in a healthy working culture, and that if the initiator cannot participate in the committee's meeting, the bill would not be processed, emphasizing that the initiator must be able to defend his or her proposals and that the board should monitor this.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller announced that the committee's report is ready, opened negotiations, and asked Lauri Laatsi to speak on behalf of the Estonian Centre Party faction.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats states that the car tax is not an environmental tax, but a means of collecting money, which primarily burdens rural areas and households with low and middle incomes and entrepreneurs, and calls on members of the Riigikogu to reduce or abolish the car tax and to support this bill.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller asks for two more minutes.
Lauri Laats
Profiling Eesti Keskerakonna fraktsioonAI Summary
Lauri Laats claims that inflation is accelerated by tax increases, including the car tax, which has no real environmental purpose, and calls for these decisions to be reversed, and emphasizes the need to reduce the value-added tax on food products to protect people’s purchasing power.
Aseesimees Arvo Aller
AI Summary
The vice-chairman thanks, and on behalf of the Isamaa faction, asks that Urmas Reinsalu speak.
Aseesimees Arvo Aller
AI Summary
Vice-chairman Arvo Aller asked for another three minutes.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu said that Estonia's inflation is the highest in the European Union, and that the government's tax policy and rising energy prices are increasing inflation, and he called on the opposition and independents to act together against price hikes, promising to abolish the car tax by 2027 and considering a deficit budget and spending cuts to improve people's purchasing power and the economy's prospects.
Aseesimees Arvo Aller
AI Summary
Your time has come.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu pointed out that this has worsened people's ability to cope and the prospects for the economy, and thanked Mr. Aller.
Aseesimees Arvo Aller
AI Summary
Anti Allas thanks and represents on behalf of the Social Democratic Party faction.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas said that the Social Democrats do not want the car tax to be abolished, but its substantive and sensible reform, because in order to curb the state's large expenses and inflation, taxes must be reviewed, and to avoid populist promises, so that education, roads, and national defense would continue.
Aseesimees Arvo Aller
AI Summary
The vice-chairman Arvo Aller requests three more minutes.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas said that car tax should be applied regionally in different ways: in rural areas it should be exempt, because there is no alternative in the countryside; in Tallinn this option exists, and moving around by public transport is basically free at the taxpayers’ expense; and we need to find solutions for exemptions from car tax for people with disabilities and the elderly, and for large families, to eliminate high charges, and to review the proposals of car-selling companies; and I also support the Chancellor of Justice's proposal; these ideas were on the table, but Mart Võrklaev and his own party had previously rejected them; now there is a new attempt to make things more reasonable.
Aseesimees Arvo Aller
AI Summary
It was a brief expression of thanks and a quick exchange, during which the name of Mart Võrklaev was mentioned and a rebuttal was requested.
Mart Võrklaev
Profiling Eesti Reformierakonna fraktsioonAI Summary
Mart Võrklaev said that he stood against the broader brackets set as the basis for the CO2-related car tax and against demands for even harsher taxation, and he stressed that accusations against the Reform Party or against him are false, because those demands actually came from the Social Democrats.
Aseesimees Arvo Aller
AI Summary
The presenter thanked, but Urmas Reinsalu's name was not mentioned, and only Isamaa was mentioned, after which Urmas Reinsalu delivered his rebuttal.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu said that the revenue from the car tax is used mainly for non-critical expenses and for servicing the Reform Party's tax shield (for example, funding of a 100-million-euro server procurement in January), does not aid road construction or public transport, and is strongly linked to inflation; therefore the car tax should be eliminated and Parliament needs to act jointly against price increases.
Aseesimees Arvo Aller
AI Summary
The speech proclaims that now is your time.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller ended the negotiations and submitted for a vote in the Riigikogu the steering committee's proposal to reject the draft bill 571 at its first reading.
Aseesimees Arvo Aller
AI Summary
The Estonian Parliament voted: 47 in favor, 25 against, 0 abstentions; the proposal gained support, and draft bill 571 has been rejected and is withdrawn from consideration.