Imposing a car tax is not acceptable for Estonia, Prime Minister Andrus Ansip said on a broadcast of the ERR public radio on Friday.
PM says car tax not acceptable for Estonia
31st May 2013, 18:56
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Rural Estonia is a low density area and a car tax would be too much of a burden for residents of rural areas in particular, Ansip said on the monthly talk show featuring the prime minister.
"A car in a rural area is a must, but it's not a must to drive long distances every day," the head of government said. "Nobody will be punished just for having a car in their car shed."
Ansip added that as he sees it, fuel excise duty is the most appropriate measure in Estonian conditions to regulate that field.
Given that Estonia's energy intensity continues to be very high, the European Commission suggested in its recommendations on Estonia's national reform and stability programs on Wednesday that the government consider incentives like car taxation and higher excise duties on motor fuels to change consumption patterns.
The government has taken certain steps to reduce energy intensity but the efforts need to be continued and increased, with additional emphasis on the renovation of residential buildings. The fleet of new cars in Estonia is the most energy intensive in the European Union and consumer patterns are not changing in spite of the increased fuel excise duties, the EU executive stated.