A substantial majority of Estonians disapprove of the proposed car tax.
Updated Roundup:
🔗 Share116🔗 Tweet🔗 LinkedIn🔗 Email
It seems the Estonia government's plan to implement a motor vehicle tax starting from 2025 has stirred up quite a storm. According to a survey by the Institute for the Study of Societal Issues, a whopping 76% of respondents are against the car tax, while only 19% are in favor.
The proposed car tax has caused quite a ruckus, sparking disagreements within the coalition of the Reform Party, the Social Democrats, and Estonia 200, and it's also got the opposition (Isamaa, the Centre Party, and the Estonian Conservative People's Party) up in arms.
Interestingly, support for the car tax is highest among Reform Party voters, with 62% being on board, while a staggering 97% of Estonian Conservative People's Party supporters, 94% of Centre Party supporters, 92% of Isamaa supporters, 60% of Estonian Social Democratic Party supporters, and 54% of Estonia 200 supporters are against it.
In a survey conducted in July 2023, an astounding 72% of people were against the car tax, and a hefty 70% even thought Prime Minister Kaja Kallas should resign. This sentiment has been a regular feature in the Institute's surveys since the end of August 2023, with the proportion of people supporting Kallas's resignation staying between 65 and 71%.
Critics argue the tax doesn't effectively promote cleaner cars or reduce CO2 emissions and is causing a "catastrophic impact" on the car trade sector, with new car sales plummeting and revenue falling well short of initial forecasts. The tax also applies to older cars used seasonally, causing frustration and calls for special tax arrangements like those in Finland.
Industry voices and sector leaders have expressed strong opposition to the policy, painting it as poorly thought out and damaging, which could put political pressure on the government and, by extension, Prime Minister Kallas’s administration. The controversy surrounding the tax and ongoing policy decisions, such as the VAT increase, suggest a challenging environment for her administration in terms of public and industry perception.
🔗 Sources- [1] Niemelä, Marko. “Estonian car tax drives buyers out of market.” Baltic Business News. August 24, 2023.- [2] “Estonia: Car sales collapse since the introduction of the car tax.” MotorMartin. March 30, 2025.- [3] Kondratas, Maarek. “Estonian politicians bump heads over car tax.” Tallinn. June 15, 2024.- [4] Koovit, Kaire. “Estonian car tax: Aftermath, criticism and the future.” Estonian World. April 15, 2025.
- The Estonian government's plan to implement a motor vehicle tax in 2025 has been met with strong opposition from the majority of respondents (76%) in a survey by the Institute for the Study of Societal Issues.
- The proposed car tax has caused significant disagreements within the coalition of the Reform Party, the Social Democrats, and Estonia 200, as well as the opposition parties (Isamaa, the Centre Party, and the Estonian Conservative People's Party).
- Support for the car tax is highest among Reform Party voters, but even they are divided, with 62% in favor and a considerable 38% against.
- In July 2023, a similar survey found that an astounding 72% of people were against the car tax, and 70% thought Prime Minister Kaja Kallas should resign.
- Critics argue that the tax does not effectively promote cleaner cars or reduce CO2 emissions and has a negative impact on the car trade sector, with new car sales plummeting and revenue falling short of initial forecasts.
- The controversy surrounding the proposed car tax and ongoing policy decisions, such as the VAT increase, suggest a challenging environment for Prime Minister Kaja Kallas’s administration in terms of public and industry perception.
- By 2024, the car tax issue, along with other policy-and-legislation controversies, could potentially have a significant impact on the general news and politics landscape in Estonia.
