Vehicle Tax

Session: 15th Riigikogu, 3rd sitting, information briefing

Date: 2024-02-07 15:49

Participating Politicians:

Total Speeches: 7

Membership: 15

Agenda Duration: 6m

AI Summaries: 7/7 Speeches (100.0%)

Analysis: Structured Analysis

Politicians Speaking Time

Politicians

Analysis

Summary

Today’s Q&A session focused on a question posed to Regional Minister Madis Kallas regarding the impact of the car tax on rural life and regional policy. Member of Parliament Mart Maastik (PID: gSTb3qmTMSY) highlighted the concern that the planned tax would significantly worsen life in rural areas, where residents are forced to use older cars and drive long distances to work, school, or extracurricular activities. Maastik criticized that increasing the tax burden in peripheral areas, where jobs are already scarce, would make life in the countryside impossible. He also questioned the environmental objectives of the tax, pointing out that older and potentially more polluting cars might face a lower tax, which would fail to help achieve climate goals. Minister Kallas acknowledged the concerns of rural residents and confirmed that the Ministry of Regional Affairs and Agriculture had put forward proposals to ensure the tax would be as mileage-neutral as possible and would take into account the structure of the older vehicle fleet in rural regions. Kallas emphasized that while the tax revenue is not directly tied to defense spending, its purpose is to ensure sufficient coverage in the general budget for various activities. He highlighted that a significant portion of the car tax revenue should be directed toward mobility reform to improve the availability and frequency of public transport in rural areas, thereby offering alternative transportation options for rural residents.

Decisions Made 1
Collective Decision

During today's information hour, no official decisions or legislative amendments were adopted. A discussion took place between a member of the government and a member of the Riigikogu regarding the regional policy impact of the car tax.

Most Active Speaker
Mart Maastik
Mart Maastik

Fraktsiooni mittekuuluvad Riigikogu liikmed

The most active speaker whose personal identification code was provided was Riigikogu MP Mart Maastik (PID: gSTb3qmTMSY). Maastik posed a question to Regional Minister Madis Kallas concerning the impact of the car tax on rural life and regional policy. Maastik represented a critical stance toward the government's tax policy, emphasizing that the car tax would make life in the countryside and peripheral areas economically even more difficult and runs counter to the objectives of regional policy.

Esimees Lauri Hussar
15:49:48
AI Summary

Member of Parliament Mart Maastik is submitting a question regarding the vehicle tax to Regional Minister Madis Kallas.

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:49:54
AI Summary

Maastik emphasized that the current design of the car tax does not help in achieving climate goals, because older and more polluting cars might end up with a smaller tax liability, meaning CO2 targets will not be met. Furthermore, the tax must not be linked to defense spending, and as the regional minister, he/she questioned how people in rural areas can afford to live with rising taxes, considering that families require multiple vehicles for commuting to school, kindergarten, and various extracurricular activities.

Regionaalminister Madis Kallas
15:51:39
AI Summary

Madis Kallas stated that the car tax must be mileage-neutral, take into account the older vehicle fleet in rural areas, and he does not support the addition of a fuel excise duty; the majority of the car tax revenue will be directed towards covering the state budget and funding the mobility reform, ensuring that people in rural areas have access to more frequent bus services.

Esimees Lauri Hussar
15:54:42
AI Summary

Chairman Lauri Hussar thanks his colleagues, announces that the allotted time has expired, and asks Mart Maastik to pose his question within one minute and the Minister to respond within one and a half minutes, so that we may still take one follow-up question.

Mart Maastik
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmed
15:54:56
AI Summary

Maastik claims that there is a shortage of jobs in the countryside and the economy is struggling, and implementing a car tax would reduce employment even further and make life in rural areas harder. Therefore, he recommends finding alternative ways to meet the state budget requirements and not burden rural residents, especially those in remote regions.

Regionaalminister Madis Kallas
15:55:32
AI Summary

Regional Minister Madis Kallas stated that the coalition and the opposition are mapping out additional revenue streams for promoting rural development and making investments. However, the most crucial element is the consideration of a motor vehicle tax, which international organizations have recommended implementing. This tax must take into account specific exemptions and must not place a burden on rural residents. The Riigikogu debate on this matter will be substantive, and the nuances will be reviewed in detail.

Esimees Lauri Hussar
15:56:47
AI Summary

Chairman Lauri Hussar thanked those who participated in the information hour and the members of the government, announced the end of the information hour, and stated that we would continue with the Riigikogu plenary session starting at two o'clock.