Introduction of Estonia's vehicle tax has cost €1.3 million
Developments and changes to Estonia's motor vehicle tax have cost the Tax and Customs Board (MTA) about €1.3 million, the agency's deputy director said.
"The cost of developing the motor vehicle tax, creating the application and putting it into production has so far been about €1.3 million," Raili Roosimaa, deputy director general for taxation at the Tax and Customs Board (MTA), told ERR on Tuesday.
"For the development of the motor vehicle tax, we have also hired two additional employees who deal exclusively with this issue on a daily basis. For other related tasks, we have relied on existing staff and resources, redistributing them within the agency to handle the additional responsibilities this tax has brought us," Roosimaa said.
She added that the preparatory work for introducing the tax began last year and that several adjustments, additions and improvements have already been made this year.
The deputy director general also said that while the possible amendment or repeal of the tax is currently under discussion, the agency will wait for a political decision before changing anything in its operations.
According to Roosimaa, the employees hired for the project are also involved in resolving problems that have arisen since the tax took effect. "We need to respond to appeals, some people fall into debt, and we have to manage tax arrears. These are the kinds of tasks the agency already handles with other taxes, but the motor vehicle tax has increased the overall workload. However, only two people are dedicated solely to this tax and the specific questions surrounding it, including interpreting the law and managing the application," she explained.
The motor vehicle tax, which consists of a registration fee and an annual tax, entered into force on January 1, 2025.
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Editor: Marcus Turovski, Mait Ots
