Interpellation concerning the introduction of the vehicle tax (No. 304)
Session: 15th Riigikogu, 3rd session, plenary sitting
Date: 2024-03-04 19:18
Total Speeches: 45
Membership: 15
Agenda Duration: 42m
AI Summaries: 45/45 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
During the Riigikogu (Estonian Parliament) sitting, Inquiry No. 304, submitted by Riigikogu members Evelin Poolamets and Anti Poolamets concerning the implementation of a motor vehicle tax, was debated. The submitters expressed concern over the new tax’s negative impact on the Estonian business and economic environment, as well as the ability of rural residents—for whom a car is an essential means of transport—to cope. Finance Minister Mart Võrklaev defended the tax, emphasizing its two main objectives: enhancing environmental sustainability (reducing car usage, favoring more economical vehicles) and covering the state budget deficit. The Minister explained that the tax is designed to favor more economical cars, and the lower annual tax for older vehicles takes into account the affordability for low-income households. The tax also helps resolve the issue of scrapped vehicles. During the debate, the opposition (primarily EKRE) raised questions regarding the constitutionality of the tax, the lack of public transport in rural areas, and the potential conflict between the registration fee and European Union single market rules. The Minister stressed that people are free in their choices, but the tax guides them toward more environmentally sustainable decisions. The discussion also touched upon alternative tax hikes (such as a bank tax) and the tax exemption for defense force vehicles.
Decisions Made 1
No decisions were made
Most Active Speaker
Varro Vooglaid (EKRE, right-wing) was one of the most active questioners, repeatedly raising questions about the registration fee’s possible conflict with EU rules and criticizing the minister’s claim regarding people’s freedom of choice in a situation where public transport is absent in rural areas.
Aseesimees Toomas Kivimägi
AI Summary
The next item on the agenda is the interpellation (No. 304) concerning the establishment of the car tax, submitted by Evelin Poolamets and Anti Poolamets on May 13, 2023. Following this, Evelin Poolamets was invited to the podium to deliver her report.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Evelin Poolamets delivered a critical address opposing the car tax, stressing that it would damage Estonia's business and economic environment, as well as people's ability to cope financially, particularly affecting residents in rural areas. She also requested an analysis of the potential impacts and clarifications regarding the proposed changes.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanked and invited the honorable Minister of Finance Mart Võrklaev to the Riigikogu rostrum to answer the questions of the interpellators.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev explains that the purpose of the motor vehicle tax is to reduce car dependency and promote economical, more environmentally friendly mobility, cover the state budget deficit, and reduce the problem of scrap vehicles, along with support measures for people with disabilities. He notes that it is a simple, broad-based tax founded on data from the traffic register, and although the negative impacts have been analyzed, mitigations have been planned for them, and the tax will be implemented in 2025.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi thanks the Minister, announces that there are questions, and gives the floor to Helle-Moonika Helme.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme questions why the car fleet is expected to decrease by only 1–2% as a result of the car tax, emphasizes the sacred protection of private property, and notes that 76% of Estonians do not support the levy. She argues that if the highest power—the people—does not support the tax, it could potentially be deemed unconstitutional.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stated that the motor vehicle tax is not unconstitutional and the Riigikogu will decide on the matter. He added that the draft bill could reduce the vehicle fleet by 1–3%, primarily affect urban areas, improve air quality and public health, and alleviate traffic congestion.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi invited Arvo Aller to speak.
Arvo Aller
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Arvo Aller stated that implementing a car tax is not expedient because, in rural areas, a car is essential for daily needs, crucial for taking children to school or accessing services, and public transport is simply not a viable option. He also questioned why a bank tax had not been considered as an alternative to the car tax.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stated that the choice of mobility remains an individual decision, citing the serious environmental impact of scrapped vehicles and the necessity of a motor vehicle tax. He also announced that the advance income tax for banks will increase to 18% and the dividend tax to 22%, effective at the start of 2025. These changes are expected to bring over 200 million euros in additional revenue to the state budget, measures which the government has already committed to.
Aseesimees Toomas Kivimägi
AI Summary
The Speaker does not wish to set a precedent with this, but accepts the point of order and invites Rain Epler to speak.
Rain Epler
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Rain Epler pointed out that although the discussion about delving into the substance has persisted, the minister answered his colleagues' question and subsequently pushed through the bank tax proposal. He further recommended that government representatives should issue a corrective signal to ensure they stay on topic if the matter begins to stray.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi stated that the question was not procedural and was entirely out of place. He asked everyone to observe the rule that one person asks and the other answers, confirmed that the minister’s explanation regarding the consideration of a bank tax as an alternative was relevant, and announced that he would no longer accept procedural questions.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vooglaid notes that many lack access to public transport and using a car is not always an option, and asks whether the registration fee applicable upon first registration in Estonia would comply with European single market rules, and what he offers as a solution in this regard.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev said that while an initial registration fee could promote more economical and newer cars, it would create difficulties for owners trying to part with older vehicles. Therefore, the matter must be discussed with the European Commission in order to maintain a unified market and encourage more environmentally friendly mobility.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi invites Rain Epler to speak.
Rain Epler
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Rain Epler requested informal advice regarding a family living in a rural area. This family currently owns two cars, but they will require a larger vehicle for transporting their children once the third child is born. He asked what adjustments the Minister would recommend they make to organize their lives, consistent with the Minister’s overall policy vision. In the second part of his question, he asked how one is supposed to choose a bus service when no buses are actually running, and whether the government plans to establish a dedicated telephone number that citizens could call to ensure bus movement is provided.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stressed that people are free to choose whether to travel by bus or by car, and family decisions are based on their needs and convictions, not on a lifestyle dictated by him.
Aseesimees Toomas Kivimägi
AI Summary
He emphasized that the bus cannot be an option if the bus service isn't running.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme criticizes the fact that people are only being offered more expensive options, and questions what the state is actually fighting against, while simultaneously stressing that Estonia has the cleanest air in Europe.
Rahandusminister Mart Võrklaev
AI Summary
Mart Võrklaev explains that the plan would not restrict people's choice of transportation mode or make cars significantly more expensive, and he emphasizes the importance of maintaining clean air and ensuring public health.
Aseesimees Toomas Kivimägi
AI Summary
He announced that he would take the final procedural question during the round of answers, return to the topic, and noted that a debate might arise, asking Varro Vooglaid to take the floor.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Vooglaid is asking for the minister's phone number because many people would like to talk to him about the car tax, and he asks how the number could be made available.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi emphasized that a person is free to choose a car or a bus, clarified that the minister had not said that the bus is an option even when there is no bus service, referred to the public telephone number, and recommended that Mart Võrklaev call regarding the car tax issue.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Evelin Poolamets is raising the issue of the unequal situation that has arisen due to the registration fee, whereby new and expensive cars can be registered abroad. This places Estonian car dealers in an unfair competitive position, and she asks how such a situation can be prevented.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stated that a car purchased abroad and brought into Estonia must be registered within five days if the buyer is a permanent resident. He also mentioned that they are considering introducing a road usage fee and other amendments to the motor vehicle tax bill concerning driving with foreign license plates, but these specific changes are not currently included in the draft legislation.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi invited Anti Poolamets to speak.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets points out a contradiction: while ministers affirm people's free choices, emphasis is simultaneously placed on influencing their behavior through tax and regulatory instruments.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stressed that while people have freedom of choice, the greater environmental impact of larger vehicles necessitates the goal of making cars more efficient and the environment cleaner. And although the overall running costs and fuel consumption of a more efficient car are lower, potentially saving money, the final decision ultimately rests with the individual.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi asked Henn Põlluaas to take the floor.
Henn Põlluaas
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Henn Põlluaas criticizes the stated “free choice” idea, likening it to the utterance of an NKVD operative. He notes that the car tax and registration tax are merely a drop in the ocean, and 80% of people do not want them. Simultaneously, VAT and fuel excise duty are rising, and the government is also talking about road taxes and congestion charges, concluding that there needs to be a clear understanding of the total scale of the tax burden.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi thanks the audience.
Henn Põlluaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
The burden will become substantial and will fall on the shoulders of the average car owner.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stated that changes to VAT, income tax reform, and adjustments to excise duties, coupled with improved access to family benefits, will increase the monthly net income of an individual earning 2,000–2,100 euros by approximately 113 euros. These measures will also help cover the increase in defense spending, which is targeted at 3% of GDP.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi conceded that the reference to the NKVD was both inappropriate and irrelevant, and said that similar comparisons would not be used; Anastassia Kovalenko-Kõlvart, please!
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
The speaker criticized the government's multi-faceted collection of payments from car owners, the reduction in investments in road infrastructure, and the abolition of free public transport on rural routes, asking how the synergy of these steps is intended to improve mobility for people in rural areas.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stated that the government is directing investments into both public transport and road construction. However, additional revenue must be found to reduce the deficit, and free public transport is not actually free—it is a cost borne by the taxpayers.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi invited Leo Kunnas to speak.
Leo Kunnas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Leo Kunnas is of the opinion that the motor vehicle tax exemption should cover all vehicles at the disposal of the Rescue Board, the Police and Border Guard Board, the Defence Forces, and the Defence League, not just operational vehicles.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stated that Defense Forces vehicles not listed in the standard register, as well as trucks up to 3.5 tons and emergency response vehicles (police and rescue cars), are exempt from the motor vehicle tax, and these decisions were made in cooperation with the Ministry of the Interior.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi announced that the query contained only one question, that there were no further questions for the minister, and finally requested that the question be directed to the Chairman of the session, Henn Põlluaas.
Henn Põlluaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Henn Põlluaas said that the minister failed to answer his question regarding the total tax burden on the average car owner, considering all the other tax increases—including VAT, excise duty, the road tax, the congestion charge, and so on—and the public wants to know what awaits them.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi affirmed his position as singular and immutable, emphasizing that the questions posed must be relevant to the topic and the ministers' responses must align with them. He noted the complexity of the impact of multiple taxation and its dependence on each consumer's consumption and income, and subsequently opened the negotiations, starting with a speech by Varro Vooglaid.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Varro Vooglaid emphasized that if public transport is not available in the region, people do not have a genuine choice to give up using a car, and therefore, establishing a car tax is unjust and logically unfounded.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanks his colleague and announces that the negotiations have been concluded and the handling of this agenda item is finished.