As first car tax deadline nears, one-third of taxpayers still unpaid

Just days before the first installment deadline for Estonia's new motor vehicle tax, one-third of those liable have yet to pay. The Estonian Tax and Customs Board (MTA) is reminding affected vehicle owners that they have until Monday, June 16, to pay at least half of their annual car tax.
To date, two-thirds of all affected taxpayers have paid the tax, the MTA reported Friday. Meanwhile, the required amount remains unpaid by nearly 140,000 individuals and just over 20,000 companies.
"Although there are still a few days left before the payment deadline, we recommend paying the necessary amount as soon as possible to avoid tax debt and related interest charges," said MTA Income Tax Department director Madis Laas.
As fraudulent letters have made the rounds alleging to be from the MTA and other government agencies, the tax board urges taxpayers to review their tax notices and make payments by logging into the MTA's official e-services portal.
Laas is reminding taxpayers to ensure that by June 16 at the latest, at least 50 percent of their total car tax liability has been transferred to their e-MTA prepayment account.
"For those taxpayers who don't yet have the required amount in their prepayment account, we will send reminders by text and email," he noted. "The day after the tax payment deadline, the necessary amount will be automatically deducted from the funds available in the prepayment account."
Vehicle owners who sold their vehicles after January 1 are also currently liable for the motor vehicle tax due Monday. Under current law, the person who was the owner or responsible user of a vehicle as of January 1 is liable for the annual motor vehicle tax.
While the Ministry of Finance is working on the relevant amendments, current legislation does not yet provide any tax relief for families with children, meaning the June 16 deadline to pay at least 50 percent of the tax owed applies equally to all liable payers.
Laas did add, however, that taxpayers unable to pay by the deadline may request a tax deferral.
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Editor: Mirjam Mäekivi, Aili Vahtla