The new version of the car tax is even worse than the previous one.
The conflict with the constitution remains unresolved.
On Monday, the plenary sitting of the Riigikogu will discuss the new version of the car tax bill, which is even worse than the previous one. This bill blatantly disregards the most vulnerable members of our society, MP Anastassia Kovalenko-Kõlvart (Center Party) says.
It seems the coalition has decided to also defy the president: «Didn't like the car tax? Well, now it's even harsher.»
The previous version of the car tax ensured exemptions for people with disabilities if their cars were specially modified. However, this put disabled individuals in an unequal position since not all of them drive modified cars. The president also deemed this provision unconstitutional. Instead of ensuring equality and exempting all disabled people from the car tax, the coalition decided to abolish the exemption altogether, offering potential subsidies instead.
However, the subsidies do not even come close to covering the costs incurred by the car tax. Moreover, people with disabilities have been waiting for subsidies to cover other expenses for a long time. Now it turns out that the subsidies will all go towards paying the car tax, leaving other needs for long-awaited social benefits unmet. This situation also conflicts with the constitution. Since people with disabilities are under special state protection according to the constitution, the state's failure to alleviate the burden imposed on these individuals is a significant violation of fundamental rights.
Benefits are getting cut?
The backdrop of the car tax bill is made even more alarming by the government's plan to reduce child benefits. Every time former prime minister Kaja Kallas was asked why there were no exemptions or compensations for large families under the car tax, she replied that these families already receive benefits to cover the tax. She repeatedly emphasized that these benefits were too high in general. It seems Kaja Kallas' spirit still resides in Stenbock House, and her ideas are still being implemented. If benefits are now reduced and no car tax exemptions are created, how are large families supposed to pay the car tax, let alone cover any other expenses? If this is not mocking the public, what is?
Unfortunately, the coalition also disregards people living in rural areas. The government is squeezing every possible penny out of people's pockets, but what do they offer in return? Investments in road construction have halved, rural schools are being closed, free public transport has been abolished, and a new land tax law has been passed, allowing land taxes to increase by 50 percent next year. Now they plan to introduce a bill that could drastically increase public transport ticket prices. They are doing everything to make living and commuting in rural areas impossible. And then they wonder why people are leaving the countryside.
Everyone will be able to challenge the car tax in court
The Center Party group has filed a complaint with the Supreme Court regarding the car tax, and the court has made several important conclusions. Firstly, after the car tax law comes into force, everyone will be able to challenge the car tax in administrative court. This means that next year, if the car tax is enacted, all individuals and businesses can ask the administrative court to determine whether the car tax is constitutional. And as mentioned earlier, there are many conflicts.
Secondly, the Supreme Court pointed out that the car tax proceedings might have excessively restricted the rights of the parliamentary minority. Again, the coalition decided to bundle all amendments proposed by the Center Party and did not allow them to be voted on separately. These amendment proposals included tax exemptions for the most vulnerable groups—people with disabilities, pensioners living alone, large families, rural residents, and the least privileged.
The proposed amendments were based on proposals and feedback from stakeholders. However, the coalition's approach took away the public's opportunity to participate in political processes. This, in turn, provides a clear basis for challenging the constitutionality of the car tax.