The president in early August 2024 promulgated amendments to the Motor Vehicle Tax Act and the Traffic Act, which are effective beginning in 2025.
- The Motor Vehicle Tax Act will now impose an annual tax liability on vehicle owners or authorised users. In addition to vehicles in categories M1 and N1, certain vehicles in categories L (motorcycles and mopeds), MS2 (wheeled off-road vehicles) and T (wheeled tractors) are also subject to vehicle tax.
- The Traffic Act will now require a registration fee for automobiles (category M1) and vans (category N1), which must be paid before the vehicle is entered in the register or before the first change of owners if a registration fee for the same vehicle has not been paid yet. For both M1 and N1 vehicles, the registration fee consists of a basic component and a CO2 specific emissions component (except for fully electric vehicles), but for M1 vehicles a mass component is also added.
Both the motor vehicle tax and the registration fee are determined using an age multiplier (except for the basic rate) for M1 and N1 vehicles (i.e. older vehicles are taxed at a lower rate).
Read a September 2024 report prepared by the KPMG member firm in Estonia