Report: Estonia only EU country without car tax

Estonia is the only EU member state that has not adopted a car tax to influence people’s transport preferences. Taxation of transport falls short of the EU average by 11 percent, a report by the Riigikogu Foresight Center reveals.

“The European Union must reduce net emissions of greenhouse gases by at least 55 percent compared to the level in 1990 by the year 2030. This also requires transport to be taxed in a way to promote more sustainable options,” the center’s expert Magnus Piirits said.

The overview shows that while transport taxes made up 1.1 percent of tax revenue on average in the EU in 2019, it was just 0.1 percent in Estonia.

The green turn also requires renovation of buildings to bring down energy costs,” Piirits emphasized.

He said that Estonia collects more motor fuels excise duty and resource and pollution fees than other EU member states. “For example, in 2019, fuel excise duty made up 6.1 percent of total tax receipt, while the EU average came to around 3 percent. Gasoline and diesel account for 92 percent of motor fuel excise duty receipt, while their use is forecast to fall,” Piirits said.

“A Foresight Centerforecastsuggests that gasoline and diesel excise duty receipt will fall by around €100 million in current prices by 2030 due to the advent of electric vehicles,” he added.

Read more: ERR.EE

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