According to Kerli Onno, head of the Tax and Customs Board's revenue department, it is understandable that the new motor vehicle tax has raised questions, but payment trends remain normal. So far, more than 97 percent of taxpayers have paid the tax.

As of September 29, the largest unpaid motor vehicle tax debt that led to an account being frozen was €4,572, while the smallest was €7.75.

A total of 2,765 persons have had their bank accounts frozen, including 654 legal entities and 2,111 individuals. Only accounts in Estonian banks have been frozen; the Tax and Customs Board has not requested assistance from foreign countries, as this is not done for debts under €1,500.

"It is fairly common for payments not to be made by the deadline. If we compare it with the trend in land tax, the pattern is very similar and we do not see anything particularly concerning in it," Onno said.

On average, the unpaid tax for people with frozen accounts amounts to €115.81. The debt total is steadily decreasing and by now only 2.4 percent of taxpayers remain unpaid.

Around 2,200 companies and 14,000 individuals have not yet paid the motor vehicle tax. "The total outstanding amount is about €1 million today. For comparison, a month ago it was €1.3 million, so it is gradually declining," Onno explained.

When a tax debt arises, the Tax and Customs Board issues instructions and gives the debtor 10 days to pay or to apply for a payment schedule.

"If these steps are not taken within the set timeframe, we must begin collection proceedings and the first automatic step is freezing the bank account," Onno said.

Although the smallest debt linked to a frozen account was under €10, accounts are generally not frozen for such small sums. Onno noted the original debt may have been larger and gradually reduced over time.

Interest is also charged on unpaid taxes, but in the case of a payment schedule, taxpayers may apply for a reduction in the interest rate.

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