Ansip: no to car tax

27.07.2010, 09:59

Estonian prime minister Andrus Ansip says that since people who drive bigger cars and pay more for fuel also pay more taxes, there is no need to establish an additional car tax for them.

Estonian papers wrote recently that the current government plans to decide by 2012 whether the current policy of treating owners of petrol-guzzlers equally with people who drive more ecological cars can be continued.

Although the draft action plan for renewable energy by 2020 says that there is a possibility for starting to tax cars with higher CO2 emissions, prime minister Andrus Ansip claims that no car tax is being planned.

Ansip said that the last time that the car tax issue was discussed in the cabinet was a year ago on the initiative of Social Democrats who are now in opposition. "This would have been punishing owners of old cars. I don't see the need to return to this issue if tax collection is something quite different than a year ago," said teh PM.

"Those people who at present consume more petrol, also pay more tax. In principle, there is a correlation that if you buy more fuel, you pollute more and you pay more tax," said Ansip.