The idea floated in the coalition to abolish the car tax raises questions among car sales companies: The slump caused by the tax that came into force at the beginning of the year has not really been overcome, but now the confusion makes potential buyers once again postpone changing their cars.
On Wednesday, the Eesti 200 chair and education minister Kristina Kallas announced her party is to propose to Prime Minister Kristen Michal in the course of the autumn’s state budget negotiations to abolish the car tax, calling it a failed tax.
Michal in turn said that Eesti 200’s proposal will certainly be discussed, given the announcement that state finances are in better shape than previously thought.
These developments have caused bewilderment among car dealers, who have already been heavily battered by the sharp fall in sales this year following the tax coming into effect at in January.
Leino Luik, head of sales and marketing at United Motors, told ERR that if the car tax is to be abolished, the debate should not be presented to the public ahead of a decision being made and acted on. But now, a great deal of confusion has been created by throwing the possibility into the air, Luik said, since it is not even clear whether the talk is about abolishing the car tax or the registration fee.
More read: ERR.EE
