Estonian president refuses to promulgate car tax law

Estonian President Alar Karis has refused to promulgate the Motor Vehicle Tax Act . Photo: Liis Treimann

Estonian President Alar Karis has refused to promulgate the Motor Vehicle Tax Act adopted by the Riigikogu on June 12, saying that the law is not in line with the Constitution because its provisions violate the principle of equal treatment.

«According to the law, a motor vehicle belonging to a natural person which has been specially modified or adapted for the transport of disabled persons or for use by disabled persons is not subject to the vehicle tax. Nor is such a vehicle subject to the registration fee. Neither exemption applies to a person whose mobility impairment is such that the person does not require the vehicle to be converted or adapted,» the head of state says in the decision rejecting the law.

«Thus, according to the law, a person with a severe or profound mobility impairment, whose only difference from those exempted from the tax is the fact that they can use an unmodified vehicle, would have to pay the tax and the registration fee. The principle of equal treatment requires that people in similar situations be treated equally,» the president emphasized.

The Estonian Chamber of People with Disabilities also stated in its opinion that not all people with mobility impairments need to have their cars modified.

According to the head of state, it is not understandable why the decisive factor in the tax exemption is not the need to use the vehicle, but whether the vehicle needs to be modified or adapted. Karis also disagrees with the justifications of members of the government that, although the exemption only applies to modified and adapted vehicles, the government is planning a more general increase in subsidies for people with disabilities.

«Even if subsidies were to be increased more generally, this would not eliminate the violation of the principle of equal treatment. Even then, it would be arbitrary if only some of those in a similar situation were granted a tax exemption. A person with a severe mobility impairment who does not qualify for the exemption could hardly be persuaded by the claim that even through he or she is treated less favorably and there is no reasonable justification for doing so, it is permissible because their situation is tempered by the general subsidy. Equal treatment is an independent value that the Constitution protects for everyone, regardless of their economic situation,» Karis said.

Since the head of state considers that the Motor Vehicle Tax Act sent to him for promulgation is unconstitutional, he finds it necessary for the Riigikogu to reconsider it and bring the law into line with the Constitution.