Here's a fresh take on the situation:
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The Estonian Chamber of Commerce and Industry (ECCI) has vocalized their concerns regarding a draft law suggesting an annual car tax and a one-time registration fee for passenger cars and vans from 2025.
Criticism levied against car tax proposal by Estonian Business Association
The ECCI advocates against any additional tax, including the proposed vehicle tax. In today's economic downturn, they believe implementing a new tax will harm Estonia's business competitiveness and will not aid in recovering from the recession; instead, it may exacerbate the situation.
Moreover, there is a concern over the impact on people's livelihoods, especially for those whose mobility relies on car ownership.
If the finance committee deems it necessary to enact a car tax and registration fee, the ECCI proposes several amendments to the bill. The primary suggestion is to tax and collect fees only from vehicles actively in use, i.e., registered in the Estonian traffic register with valid auto insurance.
Additionally, the ECCI recommends reducing the car tax and registration fee amounts based on the principle of taxpayer's ability to pay. The age component reducing the tax and fee should be abandoned, and instead, tax rates should be adjusted proportionately.
The Chamber also suggests earmarking a portion of the collected vehicle tax and registration fee revenue for the maintenance and development of road infrastructure and promoting greener mobility options.
Mait Palts, the ECCI's director general, emphasized the importance of focusing on increasing state budget revenues without overemphasizing new taxes. He also expressed concerns about the haste in implementing the new tax and registration fee without adhering to crucial legislative and tax policy principles crucial for businesses.
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The ECCI has a history of advocating for reducing administrative burdens and improving the business environment in Estonia. For example, they have recently proposed measures to decrease administrative hurdles across various sectors, such as finance and immigration[1]. Their efforts reflect the broader aim of deregulating and streamlining processes to boost competitiveness and efficiency for businesses in Estonia.
- The Estonian Chamber of Commerce and Industry (ECCI), known for advocating for business-friendly policies and improvements in Estonia's business environment, has raised concerns about a draft law suggesting an annual car tax and a one-time registration fee for passenger cars and vans from 2025.
- The ECCI argues that implementing a new car tax and registration fee in the current economic downturn could harm Estonia's business competitiveness and not contribute to recovering from the recession.
- The ECCI further concerns itself with the potential impact on people's livelihoods, particularly those who rely on car ownership for mobility.
- In an effort to mitigate these concerns, the ECCI proposes amending the bill to tax and collect fees only from vehicles actively in use, while suggesting earmarking a portion of the collected revenue for road infrastructure maintenance and development, as well as promoting greener mobility options.
