Estonia's car tax burden is modest in the European context and remains below the level of car taxation in most Western and Northern European countries, according to an analysis by the Ministry of Finance.
Finance Minister Jürgen Ligi rejects criticism that the car tax has failed both in terms of filling the state treasury and the green revolution. He says that the assessments in the media are misleading and ignore one of the main goals of the tax – to discourage car ownership.
When the long-awaited and even more feared car tax became a reality in Estonia on January 1st last year, politicians promised two things: filling the state treasury and the victory of the green revolution.