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Estonia: Draft amendments to motor vehicle tax adopted by Parliament; other draft income and gambling tax amendments

Proposal to abandon 2% planned increase in income tax and business income tax rates scheduled for 2026

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december 1, 2025

Parliament (Riigikogu) adopted two draft amendment acts that clarify the regulation of motor vehicle tax and introduce tax relief for families with children and owners of minibuses. The amendments are proposed to apply retroactively to January 1, 2025.

In addition, Parliament is currently considering draft legislation that would:

  • Abandon the planned 2% increase in the income tax and business income tax rates scheduled for 2026
  • Update the Gambling Act and related regulations to increase transparency and credibility in the sector, strengthen supervision, and support funding for culture and sports

Read a November 2025 report prepared by the KPMG member firm in Estonia

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