The chancellor said the Traffic Act is partially in conflict with the Constitution because it lacks grounds for refunding the registration fee and a sufficiently clear procedural framework.

Madise said she proposed that the Riigikogu bring the Motor Vehicle Tax Act and the Traffic Act into line with the Constitution last February.

The parliament supported her proposal and, on November 12, amended the Motor Vehicle Tax Act so that partial refunds can be made. However, the Riigikogu did not make corresponding amendments to the Traffic Act.

The chancellor of justice said the Riigikogu only partially fulfilled the proposal regulating the administration of the vehicle registration fee in the Traffic Act.

"I have repeatedly explained to the Riigikogu Finance Committee that amendments are also needed in the Traffic Act – the Riigikogu plenary made such a decision. The core constitutional issue is the same for both components of the vehicle tax," Madise wrote.

The chancellor said she had taken into account that fulfilling the proposal may take longer than usual, as amendments to the Motor Vehicle Tax Act were being drafted at the same time, including new tax incentives for families with children.

In summary, Madise stated that since a person who has lost their vehicle is in an exceptional situation compared to other vehicle owners, fully burdening them with the registration fee is excessive and violates the principle of uniform taxation.

Insufficient procedural framework

The chancellor also stated that the law must clearly set out the procedure, including the authority's powers to impose, modify, and, if necessary, collect the tax or fee.

"I find that the procedure concerning the registration fee is not regulated at a level necessary to protect the fundamental rights of vehicle owners," she wrote. "An inadequate procedure may in turn lead to unjustified restrictions on property rights and other fundamental rights."

Madise said the law does not sufficiently regulate, for example, how the registration fee is determined, making it difficult for a vehicle owner to assess whether the Transport Administration has set the fee correctly or incorrectly.

The chancellor of justice requested an analysis of the shortcomings.

"The administrative provisions are limited to those in the Traffic Act, although I have drawn the Riigikogu's attention to the need to set out a more thorough procedure. Even officials at the Transport Administration who deal with registration fee matters daily have pointed out that the registration fee needs more regulation," Madise wrote.

--

Follow ERR News on Facebook and Twitter and never miss an update!