The Estonian Parliament on Wednesday adopted amendments to the laws on car tax and traffic, which shorten the tax period and reduce the tax for families with children by up to €100 for each child.
The law reduces the car tax for parents and guardians who have at least one child under the age of 18 and own a vehicle in category M1 or N1 (passenger cars, minibuses, light trucks).
For each child, the parent's tax obligation will be reduced by an amount of up to €100 during one tax period, but not exceeding the total amount of the tax. If a child has multiple parents, and each of them has a car, the benefit will be automatically distributed among them.
According to the law, when a vehicle is deregistered from the road register, the tax period for the current year is shortened to the date of deregistration. Additionally, the payment of the tax is suspended for the period of temporary deregistration of the vehicle if it has been reported by the police as stolen.
The law also establishes that minibuses with more than seven seating places will be taxed under category N. This will reduce the car tax for 8- and 9-seater vehicles registered as passenger cars. Furthermore, the registration fee for such vehicles will also be reduced to the level of category N. As a result of the amendment, the average registration fee for such a vehicle will decrease by four times.
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