Car Tax
Session: 15th Riigikogu, 3rd sitting, information briefing
Date: 2024-02-14 14:44
Participating Politicians:
Total Speeches: 10
Membership: 15
Agenda Duration: 14m
AI Summaries: 10/10 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
During the Riigikogu session, an interpellation addressed to Finance Minister Mart Võrklaev (Reform Party) regarding the motor vehicle tax was discussed, which was submitted by Riigikogu member Riina Solman (Isamaa). Solman accused the minister of rudeness and attempting to hide the submission of the bill behind the teachers' strike. Central to the interpellation was the question of the tax's actual purpose and the utilization of its revenues, as the positions of government members (referencing Signe Riisalo) were seemingly contradictory—whether the tax was necessary for the continued existence of the state or for achieving victory in the war in Ukraine. Solman also highlighted the ignoring of the car owners' union, which had gathered 77,000 signatures, and the negative impact of the tax on large families and people with disabilities in rural areas.
Minister Võrklaev rejected the accusations of rudeness and explained that the motor vehicle tax has a dual purpose: firstly, environmental goals (reducing car usage, promoting more sustainable mobility, and a greener vehicle fleet) and secondly, reducing the state budget deficit. He emphasized that the tax revenues are directed into the state budget, which covers expenditures already made and planned, including increased funding for public transport (40 million euros) and road investments. In a clarifying question, Solman also raised the risk of rising fossil fuel prices due to the expansion of the EU Emissions Trading System (ETS2) in 2027, which, in her estimation, renders the car tax unnecessary. Võrklaev responded that the potential rise in fuel prices actually underscores the need for the car tax, as it directs people to choose more economical vehicles and reduce fuel consumption, thereby offering savings in the long run.
Decisions Made 1
As this was the Riigikogu session's Question Time, no legislative decisions were made regarding the motor vehicle tax bill.
Most Active Speaker
The most active speaker was Finance Minister Mart Võrklaev, who represented the position of the government (the coalition). Võrklaev had to repeatedly explain the objectives of the tax, refute accusations of impropriety, and defend the structure of the draft bill (including the addition of the age component) from both environmental and fiscal policy perspectives. He emphasized the necessity of the tax for covering the state budget deficit and for steering behavior toward greater environmental sustainability.
Esimees Lauri Hussar
AI Summary
Riigikogu Member Riina Solman is submitting the fourth question to Minister of Finance Mart Võrklaev regarding the car tax.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman accuses the government of concealing the motor vehicle tax plan and disregarding the will of the citizens, citing 77,000 signatures and the teachers' strike. She also asks what the collected funds will be used for and why there is no unified stance regarding the plans put forth by Riisalo and Võrklaev.
Rahandusminister Mart Võrklaev
AI Summary
Mart Võrklaev explains that the purpose of the motor vehicle tax is to reduce car dependency and promote environmentally friendly mobility, and the revenue from it will go into the state budget to cover both already incurred and planned expenses, including public transport and road investments. The decision will be adopted by the Riigikogu.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offers his thanks and asks Riina Solman to pose a clarifying question.
Riina Solman
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Riina Solman is criticizing the proposed car tax, emphasizing that starting in 2027, the emissions trading system will be extended to transport, which will introduce a carbon cost in fuel on top of the existing excise duty. She then questions why the car tax is being collected at all—is it solely for incentivizing change, or also for other objectives, such as winning the war in Ukraine?
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev explains that the state budget deficit necessitates covering essential expenditures and road investments. Furthermore, by taxing motor vehicles based on CO2 emissions, mass, and fuel consumption, the goal is to steer people toward more economical means of transport, reduce fuel consumption, and promote public transit.
Esimees Lauri Hussar
AI Summary
The Chairman thanks the speaker and asks for a follow-up question to be put to Mart Maastik.
Mart Maastik
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Mart Maastik claims that the proposed car tax taxes the oldest and most polluting cars the least, creates a junk fleet that increases pollution, fails to help meet climate goals, and exacerbates the problems in rural areas concerning car ownership and school closures. He then asks on what basis the minister claims that this tax will fulfill the climate goals.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stressed that the primary goal of the motor vehicle tax is first and foremost to reduce car dependency in rural areas and lower the environmental impact, not to take anyone's car away. He noted that the tax structure incorporates an age component and the option to choose a cheaper or more economical used car, meaning the tax constitutes only about 2% and, on average, 5–15% of the total motor vehicle costs.
Esimees Lauri Hussar
AI Summary
Chairman Lauri Hussar offers his thanks and concludes the consideration of today's fourth item.