Draft Law on Annulment of the Motor Vehicle Tax Act (647 SE) - First Reading
Session: 15th Riigikogu, 5th session, plenary session
Date: 2025-06-19 01:03
Total Speeches: 77
Membership: 15
Agenda Duration: 1h 4m
AI Summaries: 77/77 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
During the Riigikogu session, Bill 647, initiated by the Isamaa faction, was debated. The bill’s objective was to repeal the Motor Vehicle Tax Act, effective January 1, 2026. Presenter Aivar Kokk (Isamaa) sharply criticized the tax, labeling it voter deception and socially unjust, particularly toward large families and people with disabilities, citing examples of shockingly high tax bills. He stressed that the governing coalition ignored pre-election promises and is essentially double-taxing car owners, given that the fuel excise duty is already established.
The debate was tense, focusing on the coalition’s responsibility and the "festival of tax hikes." Coalition politicians referred to planned relief measures for families with children and investments in roads, which Kokk deemed insufficient. The lead committee (the Finance Committee), represented by Annely Akkermann, proposed rejecting the bill during its first reading. During faction negotiations, Urmas Reinsalu (Isamaa) promised the tax would be abolished by 2027 at the latest, accusing the government of dishonest politics and succumbing to pressure from interest groups. Anti Allas (SDE) confirmed that he would vote in favor of the bill, although he felt that some form of environmentally oriented car tax was necessary for the state. Following the vote, the bill was rejected.
Decisions Made 1
Bill 647 (Draft Act on the Repeal of the Motor Vehicle Tax Act) was rejected in the first reading (42 in favor, 11 against).
Most Active Speaker
Aivar Kokk (Isamaa) was the most active speaker, serving as both the rapporteur and the person answering questions, and representing the position of the right-wing opposition.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller introduced today’s 22nd agenda item, which concerns the first reading of Draft Act 647, initiated by the Isamaa faction, regarding the annulment of the motor vehicle tax. The rapporteur was Riigikogu member Aivar Kokk.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk sharply criticized the motor vehicle tax pushed through by the government, labeling it voter betrayal and economically unfounded, given that none of the coalition parties had promised it before the elections and it undermines the economic security of the Estonian people. The speaker particularly stressed that the tax is socially unjust, placing a severe burden on large families and people with disabilities. Consequently, in line with the draft legislation submitted by the Isamaa party, he demands that the motor vehicle tax law be declared null and void.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk stated that the motor vehicle tax is fundamentally flawed and that the law establishing it must be declared null and void starting January 1, 2026. He criticized the government and the coalition for failing to deliver on their promises, stressing that the car tax disproportionately burdens large families, rural residents, and people with disabilities, as well as damaging the competitiveness of businesses.
Aseesimees Arvo Aller
AI Summary
Arvo Aller thanks [them] and invites Maido Ruusmann to ask questions.
Maido Ruusmann
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Maido Ruusmann noted that a tax is a burden and the car tax could be very difficult for Estonians to bear, but he referenced the promise agreed upon in the coalition agreement: that the car tax for families with children would be alleviated by 100 euros per child, and that an amount equal to the annual tax would be additionally invested in roads, which might offer car owners some relief. He then asked whether this information had actually reached the public or if it had just been talk.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Riigikogu member Aivar Kokk emphasizes that the coalition agreement is not law, and argues that if the car tax and registration fee yield over 200 million, then approximately 250 million must be channeled into road infrastructure. He simultaneously pointed out that the fuel excise duty was previously linked to road funding until 2015—a policy, he noted, that was implemented by his own party colleagues.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller addresses Hanah Lahe and asks her for something.
Hanah Lahe
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Hanah Lahe asks how the introduction of the car tax might be related to the low birth rate, and how exactly those two things are connected.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk criticizes the coalition and claims that large families must bear a heavy burden due to their large cars, noting that he voted in favor of the motor vehicle tax. He further reminds [the public] that in the spring of 2023, 200 euros per month was taken from families with many children, reducing their annual income by 2,400 euros. The addition of the approximately 800-euro car tax brings the total financial impact to 3,200 euros, which is a very large sum for many families and causes worry, even during the time they need to purchase school supplies.
Aseesimees Arvo Aller
AI Summary
The speech is the invitation of Vladimir Arhipov to the stage.
Vladimir Arhipov
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vladimir Arhipov argues that implementing the car tax stabilized the budget, but the economy has started spinning backward because of it. Furthermore, he doesn't see anything beneficial for the economy in the new coalition agreement. He then asks what should replace this tax if it were abolished—would a bank tax or lowering other taxes give the economy a necessary boost and get the gears turning in the right direction?
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
The urgent decisions made during the 2020 crisis—the reduction of excise duties and three months of wage support—brought the Estonian economy the fastest growth in Europe for the next two years. However, the subsequent change in today's coalitions, coupled with rising energy prices and a lack of cost control, has created problems. At the same time, while a motor vehicle tax could potentially save about 200 million euros, 300–500 million euros annually from the general budget remains untapped, and state budget transfers give ministers free rein.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invites Anastassia Kovalenko-Kõlvart to take the floor.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker emphasizes that the motor vehicle tax is unconstitutional and asks why the Ministry of Finance and the Finance Committee have done nothing about it regardless.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk stated that the Finance Committee has initiated a draft bill, and following the attention drawn by the Chancellor of Justice, it has been clarified that if something happens to the car, one does not have to pay for the entire year. He hopes that issues concerning disabled people and large families will also reach the discussion stage this autumn, and that next year car owners won't have to pay so much. Furthermore, the chairman of the Finance Committee has submitted the draft bill to the Riigikogu (Parliament), and it has already been discussed within the Finance Committee.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller calls upon Toomas Uibo to speak.
Toomas Uibo
Profiling Eesti 200 fraktsioonAI Summary
Toomas Uibo said that the new coalition agreement stipulates that families with children will receive car tax relief, and he asked if Isamaa would be prepared to support it when the proposal reaches the floor.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk said that although the coalition is offering a small concession on reducing the car tax for large families, they have taken roughly 2,000 euros away from families in recent years. Furthermore, income tax, VAT, and electricity and fuel taxes are all rising, meaning this is just a small step on a long road.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller calls upon Rain Epler to speak.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler asks whether the Social Democrats in the cabinet are listening and will support the car tax bill during the vote, taking into account the usual consultations with opposition parties and Anti Allas’s alleged opposition. He also provides an example, noting that he bought a jeep before the car tax came into force.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk said that Anti has been against the motor vehicle tax, at least in words, and hopes that today he will clearly support abandoning that tax.
Aseesimees Arvo Aller
AI Summary
This is a brief instruction: Invite Anti Allas to be the next speaker.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas thanks the chair of the session and his colleagues, confirming that he supports abolishing the car tax, both previously and currently. He explains that the problematic issues raised during the discussions were unfortunately left unresolved (or pushed aside) due to the tax's proponent and the then Minister of Finance.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller announced that it was time for the audience and invited them to ask questions.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The talk addresses families with children and related topics, but unfortunately, a discussion is impossible right now.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller thanks the audience.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
He argues that one must truly vote against this question, which in practice means voting in favor.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk said that due to Isamaa, coalition negotiations and state budget discussions are blocked, and committee bills are not reaching debate. He also denounces the income tax benefit intended for high earners, for which three-quarters must be taken from people and businesses, and which does not help low-wage earners.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller addressed Anastassia Kovalenko-Kõlvart and said to her, "Please."
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart criticized the events in the Finance Committee, where the opposition's amendments concerning large families, people with disabilities, and the elderly were not allowed to be voted on separately, and the Social Democrats voted against their adoption, which, according to her, reveals the hypocrisy of the Reform Party.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk criticizes the bundling of bills and "take it or leave it" type votes in the Riigikogu, saying that it was a poor precedent and that the Supreme Court failed to consider its potential for abuse.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller calls upon Priit Sibul to speak.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul asks whether the partial car tax exemption promised by Eesti 200 to families is the same heroic deed as the Reform Party's exemption of corporate income tax, and whether Mart is guilty of everything or if there were more people.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk emphasizes that the coalition must be managed based on consistent agreements, and he criticizes the tax policy of the Reform Party and Eesti 200. He notes that while the Reform Party is withdrawing its proposed tax hike, the law has not yet entered into force, and the increase in income tax and VAT will ultimately be permanent, not temporary.
Aseesimees Arvo Aller
AI Summary
Mart Võrklaev asked the waiter a question.
Mart Võrklaev
Profiling Eesti Reformierakonna fraktsioonAI Summary
This address clarifies why Anti Allas was unable to persuade Jevgeni Ossinovski to oppose the motor vehicle tax. It also points to the Social Democrats' appetite for new taxes and Ossinovski's role in increasing the burden from 100 million to 200 million, which constitutes a tax hike, and questions whether people grasp why this tax frenzy has not abated.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk said that Mart did not invite Isamaa to the coalition negotiations, and therefore it was impossible to ascertain whether anything of the sort was true or not. He recalled that one must have life experience when making decisions, and happily emphasized that Mart has now supported Isamaa's proposals and that the tax should be at least half the size, noting that his proposal was 100 million, not 240 million.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller invited Priit Sibul to speak.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul asks Aivar why Anti couldn't explain that to Jevgeni, since they are both reds, and whether he understood why Mart succumbed to Jevgeni's blackmail and only received 240 out of 100 million.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Isamaa supports the repeal of the motor vehicle tax, and if the coalition collapses, the first bill submitted to the Riigikogu will be precisely its cancellation, confirmed Aivar Kokk, adding that Mart is capable of learning and that the discussion centers on the sum of 100 million and making possible amendments.
Aseesimees Arvo Aller
AI Summary
Rain Epler was called up to the stage at the beginning of the address.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler argues that Anti has voted inconsistently on the car tax issue, posted a video about buying a jeep right before the tax changes, and even brought up his large salary. He questions whether a background in political strategy could explain this kind of behavior, and if the votes might have been counted beforehand.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
He said that decisions often depend on where you sit—whether you are in the opposition or the coalition—and illustrated this with the story of the hunting dog and the hare, where the dog states that he personally has nothing against the hare, but that’s just the nature of the job.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller offered his thanks and announced that there were no further questions, whereupon Priit Sibul posed a question to the presiding officer of the session.
Priit Sibul
Profiling Isamaa fraktsioonAI Summary
Priit Sibul suggested that the chairman verify Rain's query regarding Anti's fluctuating vote, as he isn't certain about it and believes that Anti might have voted only "for" — first in favor of adopting the law and subsequently in favor of revoking it.
Aseesimees Arvo Aller
AI Summary
The speaker noted that they did not see a connection to the procedure, but the transcript conveyed that message, and now the discussion held in the Steering Committee will continue, and the Chair of the Finance Committee, Annely Akkermann, is asked to serve as the rapporteur.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
The government does not support the draft bill, and the committee recommends rejecting it during the first reading, since the initiators' representatives were absent and the matter was not discussed at length.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller called Aivar Reinsalu and Urmas Reinsalu to present their questions, whereupon the chamber laughed.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu posed a fundamental question to Mrs. Akkermann regarding why people who received their car tax notice in January must pay a larger sum by June 15, whether the commission has investigated this matter, and why 16,000 people are required to pay the car tax retroactively, and what exactly that entails.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann said that she couldn't explain, that she hadn't read those news reports, and that those questions were not discussed at the committee meeting.
Aseesimees Arvo Aller
AI Summary
Vice-Chairman Arvo Aller asked Urmas Reinsalu to come up onto the stage.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu asked why the Prime Minister considered this a technical question, and then posed the question of who in Estonia, as the architects of this grandiose project, should provide explanations, and why people are paying a higher motor vehicle tax than the tax notice issued in January based on registry data had stipulated.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann said that she does not have that information and is unable to answer the question.
Aseesimees Arvo Aller
AI Summary
The address was simply a request aimed solely at Aivar Koki.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
Aivar Kokk asks how the director and the chairwoman of the committee view Mart's proposal to reduce the annual motor vehicle tax contribution to the state budget to 100 million, rather than 240 million, and whether they would support it.
Annely Akkermann
Profiling Eesti Reformierakonna fraktsioonAI Summary
Annely Akkermann said there was a slight misunderstanding, and the motor vehicle tax is planned at 100 million, with the registration fee being separate.
Aseesimees Arvo Aller
AI Summary
There are no further questions; the Deputy Speaker opens the floor for discussions with the factions, and Urmas Reinsalu, speaking on behalf of the Isamaa faction, requests three additional minutes.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu promises that Isamaa will submit a bill to abolish the car tax, and he firmly states that the day this tax is eliminated will arrive no later than 2027, because the car tax has failed and burdens people, especially those with special needs and those living in rural areas.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu of the Isamaa party sharply criticizes the car tax, labeling it a failure, something pushed through with lies, and damaging to the economy and society’s most vulnerable groups (people with special needs, families). He accuses the governing coalition (the Reform Party and the Social Democrats) of evading political responsibility and describes the proposed tax alleviations as cynical blackmail. The speaker promises that Isamaa will repeatedly submit a bill for the repeal of the car tax until the tax is abolished, and calls on the Estonian people to use the 2025 local and 2027 general elections as a "judgment" against the government's substandard policies.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller announces, "Your time!" and Anti Allas, representing the Social Democratic Party faction, requests the floor.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas said that he supported the abolition of the car tax, but hated populism and sees that the car tax could, in some respects, help guide sustainability and consumption, but the current form is not correct, and money is needed to finance state services, and the structure of taxes must be seriously reviewed.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller requested three additional minutes.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas emphasizes that there is a shortage of funds in all sectors—national defense, education, and road construction—and right-wing policy fails to offer a plan for repaying the debt, pointing specifically to the handouts and benefits granted in 2020.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller calls upon the gentlemen to listen and allows the speaker to finish his address, noting that Mr. Reinsalu may take the floor later.
Anti Allas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Anti Allas states that the car tax is detrimental to rural life and poses a significant burden on large families. Since there is no alternative to car transport available in the near future, the tax must be seriously reconsidered, and he supported its abolition as a form of protest.
Aseesimees Arvo Aller
AI Summary
The Deputy Speaker announced that, due to the addresses made by the parliamentary groups, Signe Riisalo would be granted a reply from the floor on behalf of the Reform Party faction.
Signe Riisalo
Profiling Eesti Reformierakonna fraktsioonAI Summary
Riisalo said that he did not have a faction speech and requested a reply, arguing that the sweeping accusations were not, in fact, reasonable or pertinent, and recalled the half-year of negotiations with disabled people regarding the car tax issue, which had been initiated by the then Minister of Finance, Mart Võrklaev. This comment drew laughter from the chamber, and Urmas Reinsalu added: “Mr. Võrklaev is like a scapegoat who has to redeem the whole world!”
Aseesimees Arvo Aller
AI Summary
He invited everyone to listen to the response speech and thanked the audience.
Signe Riisalo
Profiling Eesti Reformierakonna fraktsioonAI Summary
The six-month negotiations centered on how disabled individuals could best receive assistance during the implementation of the car tax. The relief measures proposed by disability organizations focused on addressing practical issues, such as the rising cost of assistive devices and changes to the approved lists, even though they did not hold high expectations for an increase in benefit rates. Furthermore, they requested that accusations based on unknown facts not be circulated.
Aseesimees Arvo Aller
AI Summary
Deputy Chairman Arvo Aller offered his thanks and, on behalf of the Isamaa faction, called upon Urmas Reinsalu to deliver a response speech.
Urmas Reinsalu
Profiling Isamaa fraktsioonAI Summary
Urmas Reinsalu stated that representatives of organizations for people with disabilities and other groups did not show enthusiasm for the car tax, arguing that the tax fails to meet society's expectations and needs. He added that six months of negotiations showed that many stakeholders, including organizations for people with disabilities, have been overridden by the car tax positions, and that its implementation has been clumsily botched.
Aseesimees Arvo Aller
AI Summary
Aivar Kokk's name was mentioned in the presentation, and Aivar Kokk was invited to give a response, after which Mart Võrklaev is scheduled to speak.
Aivar Kokk
Profiling Isamaa fraktsioonAI Summary
The 2020 decisions brought about economic growth and improved tax revenues. Expenditures decreased over the following two years, and Aivar Kokk stresses that the economy must be understood, and wealth does not arise from taxes.
Aseesimees Arvo Aller
AI Summary
The Deputy Speaker thanks [the participants], requests silence in the chamber so that the responses may be heard, thanks Aivar Kokale, announces that Mart Võrklaev has been recognized, and asks him to respond.
Mart Võrklaev
Profiling Eesti Reformierakonna fraktsioonAI Summary
Mart Võrklaev said that 8 million euros in additional support for people with special needs is being allocated from the motor vehicle tax revenue, emphasizing that this support is needs-based, was agreed upon in cooperation with people with disabilities, and that no one was forced to support the draft legislation. He concluded that this aid is correct, well-targeted, and necessary for acquiring assistive devices and covering transportation costs.
Aseesimees Arvo Aller
AI Summary
Deputy Speaker Arvo Aller closed the debates, announced the leading committee's proposal to reject Bill 647 at the first reading, and put the matter to a vote, requesting the members of the Riigikogu to take a stand and cast their votes.
Aseesimees Arvo Aller
AI Summary
Forty-two members of the Riigikogu voted in favor of the proposal, eleven voted against, and zero abstained; Bill 647 has been rejected and is removed from the legislative procedure; today's agenda is exhausted, and the sitting is concluded.