Interpellation concerning the impact of the motor vehicle tax (No. 610)
Session: 15th Riigikogu, 3rd session, plenary sitting
Date: 2024-03-04 20:31
Total Speeches: 59
Membership: 15
Agenda Duration: 50m
AI Summaries: 59/59 Speeches (100.0%)
Analysis: Structured Analysis
Politicians Speaking Time
Politicians
Analysis
Summary
This hearing addressed the inquiry submitted by Riigikogu members Anastassia Kovalenko-Kõlvart and Andrei Korobeinik on February 14, 2024, concerning the impact of the motor vehicle tax on auto and motor sports. The inquiry focused specifically on how the planned vehicle tax might affect Estonian auto and motor sports, considering that athletes already incur significant costs to pursue their respective disciplines.
The inquiry raised several important questions: whether analyses have been conducted regarding the vehicle tax's impact on sports, whether the ministry has met with sports federations to find compromises, what the potential price increase might be when combined with other tax hikes, and whether support measures are planned for the development of sports. The debate also highlighted broader questions concerning the fairness of the vehicle tax and its effect on various societal groups, including lower-income individuals and residents of rural areas.
Decisions Made 1
An answer was provided to the inquiry, but no specific decisions were made. The Minister of Finance clarified the government's positions and promised that the Ministry of Culture would develop measures to compensate museums and cultural institutions that exhibit vintage vehicles to the public for the motor vehicle tax.
Most Active Speaker
The most active participant was Anastassia Kovalenko-Kõlvart (Centre Party), who submitted a formal inquiry and spoke three times. She criticized the government's approach to the car tax, stressing its negative impact on sports and ordinary citizens. Kovalenko-Kõlvart represented a left-wing/centrist viewpoint, emphasizing social justice and the protection of less affluent people.
Aseesimees Toomas Kivimägi
AI Summary
The fifth item on the agenda was dropped due to the withdrawal of the interpellation; next, the sixth item will be discussed, which is the interpellation concerning the impact of the motor vehicle tax (Interpellation No. 610), submitted by Kovalenko-Kõlvart and Korobeinik on February 14, 2024. The rapporteur for this item is Anastassia Kovalenko-Kõlvart.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart notes that the triple taxation of the car tax—VAT, fuel excise duty, and the motor vehicle tax—primarily burdens low-income individuals and rural areas, and threatens auto and motorsport, for which state aid has been minimal. She is submitting an inquiry to the Minister of Finance to obtain impact analyses, scheduled meetings with the respective federations, estimated price increases, potential support measures, and a plan detailing how to proceed if the sport begins to fade away in Estonia.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi invited Finance Minister Mart Võrklaev to the Riigikogu rostrum to answer his colleagues' interpellation.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stated that analyzing the impact of the separate motor vehicle tax on racing vehicles is not deemed necessary, as most of them are not listed in the traffic registry, meaning the tax either does not apply or the impact is negligible. He noted that while increases in VAT and the motor vehicle tax are planned and their effects have been assessed, the ministry sees no justification for special measures or tax exemptions. He stressed that the auto and motorsport sectors cannot be at risk of extinction due to these taxes, because they are subject to the tax on the same basis as conventional vehicles.
Aseesimees Toomas Kivimägi
AI Summary
The Deputy Speaker offered his thanks, announced that there were questions, and called upon Martin Helme to answer them.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme accuses banks of anti-ownership and anti-wealth rhetoric, labeling it as actual communism. He then asks how the collections of vintage car enthusiasts are taxed if the assets are registered under a legal entity (for example, a Ford Model T).
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev announced that a mechanism will be introduced to compensate the motor vehicle tax for those who display old and valuable vehicles to the public. This means that, for example, in the case of a Ford Model T, the tax would not amount to 50 or 1000 euros, but would instead be reimbursed by the state.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi invited Anastassia Kovalenko-Kõlvart to the stage.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart criticizes the minister's tone, which she feels shows indifference toward our traditional sports, and emphasizes that top athletes and their parents often hold multiple jobs, pay higher taxes, and face greater expenses, and therefore should not be subjected to additional demands, concerning which she has also submitted proposed amendments.
Aseesimees Toomas Kivimägi
AI Summary
The speech was simply a thank you.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart asks whether the proposed amendments concerning motorsport will be taken into account.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev said that he is not indifferent to sports and motorsports, acknowledged the work of the athletes, and announced that the government has submitted a draft bill to the Riigikogu, which the Finance Committee and the Riigikogu are discussing.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi confirmed that the minister’s answers to Anastassia’s questions were balanced and perhaps even too candid, but all the more honest for that very reason, adding that if the answers are unsatisfactory, people are entitled to hold differing opinions.
Varro Vooglaid
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Varro Vooglaid raises the issue of illogical taxation, asking why scooters and motorcycles should be taxed at the same time that people are being encouraged to switch to vehicles with low CO2 emissions. He suggests the possibility of exempting them during the summer months and provides examples of taxing sports equipment to question whether the proposal discriminates against motorsports athletes and how this should be viewed in the context of Article 12 of the Constitution.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev said that if EKRE were to make amendments regarding the motor vehicle tax—such as taxing athletes, taxing rackets, skis, and sneakers—he would deem them obstructionist and would not wish to take them into account, because in his opinion, those things should not be taxed separately.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi asked Rain Epler to come to the stage.
Rain Epler
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Rain Epler highlights contradictions regarding the income tax issue: Läänemets claims they are implementing a progressive income tax together with the Reform Party, but Keldo denies this. Epler then asks whether the progressive income tax is being done with the Social Democrats or not.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev announced that the progressive income tax will be abolished and no corporate income tax will be introduced, and the government is in agreement with EKRE.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi requested that his colleagues stick to the interpellation, the topic of which is auto and motorsport and the impact of the motor vehicle tax on them, noting that while he cannot limit questions, he asks that they remain on topic.
Siim Pohlak
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Siim Pohlak criticizes the government, arguing that while they claim no one is restricting consumption or ownership, energy prices and other measures are making things so expensive that people are forced to give them up. According to him, this approach is extremely cynical and arrogant towards the Estonian people.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stated that the government is making significant efforts to develop renewable energy and wind farms, which will drastically reduce electricity prices. He added that we do not need to discuss the topic of a €4,000 electricity price, as the government is working on this every day.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme criticizes mandatory policies, pointing out that 76% of Estonians do not want them. She proposes that only those who personally support the car tax should pay it, utilizing Eesti 200’s idea of a personalized state.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi asks for Helle-Moonika Helme to be called to the stage.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Chairman Toomas Kivimägi thanks everyone.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
He/She refers to the Commercial Register data and points out that these are members listed on the Reform Party's list.
Rahandusminister Mart Võrklaev
AI Summary
He/She thanks them for the proposal, but cannot and does not wish to embrace any fondness for communism, noting that we have different sympathies.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi stated that the question was provocative, not substantive, and that the minister's reference to communism was irrelevant.
Henn Põlluaas
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Henn Põlluaas posed a practical question to the minister regarding how to resolve the situation where people are forced to pay the car tax for vehicles they have already sold, but which are still registered in the former owner's name. Furthermore, according to media reports, there is a large number of such cases.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stated that there are over 200,000 vehicles currently listed in the register that are unused, and these are often just wrecks that cause environmental and visual pollution. He added that as part of the motor vehicle tax reform, guidelines and regulations are being developed to allow people to deregister a car that genuinely no longer exists, and therefore avoid paying the tax on it.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi said he would like to debate Veidemann, but while sitting in this chair, he lacks the mandate to do so, and he asked for Arvo Aller’s help.
Arvo Aller
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Arvo Aller asks whether additional levies are being planned for property and watercraft, and emphasizes that fields aren't always full of wrecks, and that sport, especially motorsport, plays an important role.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev stated that the current motor vehicle tax bill does not include additional taxation of ships or sports equipment, and the Finance Committee will discuss and decide on those proposals.
Aseesimees Toomas Kivimägi
AI Summary
The speech was simply the cue for Evelin Poolamets to come out and perform.
Evelin Poolamets
Profiling Fraktsiooni mittekuuluvad Riigikogu liikmedAI Summary
Poolamets notes that due to the growth of alternative means of transport, additional infrastructure and parking facilities are needed, and he ironically refers to the Reform Party’s plan to take Estonia back 50 years, asking whether a hitching post would also be installed near the Riigikogu so that commuting to work by horse would be possible.
Rahandusminister Mart Võrklaev
AI Summary
Whether or not a mounting block appears next to the Riigikogu—the proposal must be submitted to the board, which will weigh the matter, and as a minister, I don't have much room for discussion here.
Aseesimees Toomas Kivimägi
AI Summary
This is a short plea directed at Mart Helme.
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Mart Helme claims that the proposed diesel car tax could create the opposite effect, because people are currently buying more powerful diesel cars to avoid the tax coming into effect next year.
Rahandusminister Mart Võrklaev
AI Summary
Võrklaev pointed out that while there are disagreements surrounding taxation and the purchase of vehicles, every individual is free to make decisions based on their needs, and therefore, consumption is a direct result of those choices.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi invites Anti Poolamets to take the floor.
Anti Poolamets
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Anti Poolamets claims that nudging is a technology of power and governance, noting that it is reminiscent of the Soviet era and the nudging directed against private property. He asks how you interpret your understanding of the nudge concept when it directs people toward smaller cars and homes.
Rahandusminister Mart Võrklaev
AI Summary
He/She emphasized that we live in a free country and that people's freedom of decision and choice must remain unrestricted, so that everyone can decide for themselves where they live and what they drive.
Aseesimees Toomas Kivimägi
AI Summary
Deputy Speaker Toomas Kivimägi is closing the floor for questions because we are immediately having a change of the presiding officer, and he asks whether Helle-Moonika Helme wishes to thank the chair or say something a little sharper to them.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme said that she doesn't know if Kert Kingo managed to give notice before asking her question.
Aseesimees Toomas Kivimägi
AI Summary
Vice-Chairman Toomas Kivimägi said that although the matter was not brought to a conclusion, it will still be addressed; he will hear the question and then hand over the chair.
Helle-Moonika Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Helle-Moonika Helme emphasizes that EKRE has not made such amendments regarding the draft car tax law, and recalls that the Reform Party's proposals were genuinely absurd, such as joining the Russian Federation and withdrawing from NATO.
Aseesimees Toomas Kivimägi
AI Summary
Toomas Kivimägi thanked them and said that the minister never claimed that they had submitted the amendments; the word “if” was mentioned, and he handed the chair of the session over to his colleague Jüri Ratas, who is already very eager to come here.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas invites Mart Helme to ask a procedural question.
Mart Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Mart Helme accuses the minister of a lack of competence, pointing out that people are buying powerful diesel SUVs specifically to avoid high registration taxes. He then asks whether the draft bill amounts to the government shooting itself in the foot, while simultaneously accusing the minister of failing to provide answers and of twisting the questions by putting words in their mouth.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas stated that there is no available format for making a remark or a statement for the record within the scope of procedural questions. He subsequently opened the debate and offered the floor to Kert Kingo.
Kert Kingo
AI Summary
Kert Kingo said that she was mistaken and thought that Helle-Moonika Helme was about to start asking a question, and she calmly submitted her request for a question, which turned out to be procedural.
Aseesimees Jüri Ratas
AI Summary
Ratas declared the round closed, opened the floor for debate, and invited Anastassia Kovalenko-Kõlvart, the representative of the questioners, to the podium. She requested eight minutes of additional time.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart stresses that the proposed car tax bill is inappropriate and unjust given the current economic climate, arguing that it places a burden on the most vulnerable and could cause harm in rural areas and the sports sector. She therefore wants the bill withdrawn and replaced with a tax on banks' excess profits.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas invited Martin Helme to the podium in the Riigikogu.
Martin Helme
Profiling Eesti Konservatiivse Rahvaerakonna fraktsioonAI Summary
Martin Helme accuses the Reform Party of ultra-red communist politics, criticizes their tax policy, and promises that a car tax must not be introduced in Estonia. Furthermore, if it is nevertheless enacted, the Cohabitation Act and the perversion of marriage will be repealed.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas thanked [the assembly/previous speaker] and invited Minister of Finance Mart Võrklaev to the Riigikogu rostrum.
Rahandusminister Mart Võrklaev
AI Summary
Finance Minister Mart Võrklaev clarified the principles of the motor vehicle tax: for old or unique vehicles owned by private individuals, the tax may be up to 50 euros; in the case of legal entities, there is no social dimension involved; an exception will be made for those who display items of cultural value; and the annual tax for the most powerful motorcycles is 90 euros, which, according to him, will not negatively affect the sport, and the state will continue to support motorsports.
Aseesimees Jüri Ratas
AI Summary
Deputy Speaker Jüri Ratas thanked Anastassia Kovalenko-Kõlvart and invited her to give a response speech.
Anastassia Kovalenko-Kõlvart
Profiling Eesti Keskerakonna fraktsioonAI Summary
Anastassia Kovalenko-Kõlvart stated that the entire motorsport community is concerned about several upcoming tax hikes (VAT, excise duty, and the motor vehicle tax), which, taken together, could impact vehicle ownership for both the sports sector and ordinary citizens, adding that various federations and clubs have already voiced their concerns to her.
Aseesimees Jüri Ratas
AI Summary
Jüri Ratas offers his thanks and announces that there are no further requests to speak, the discussions have concluded, and the inquiry has been answered.