Finance Minister Jürgen Ligi says that the government wants to help people who depend on cars.
For each child, the tax can be reduced by up to 100 euros. This applies to parents or guardians who have custody of the child.
If a child has multiple parents, the tax deduction will be divided between them. It can only be used for the current tax period and does not carry over to the next period.
It does not need to be applied for separately. The tax office will review tax notices and make necessary recalculations. If needed, money will be refunded to the person's account.
As a result, the average car tax for families will decrease by over 50%. In total, the tax will be reduced by 16 million euros.
Another change reduces the tax rate for minibuses. Minibuses are now taxed at the rate for N-category vehicles. Previously, it was M-category.
The M-category tax consisted of three parts, while the N-category tax consists of two parts: a base part and a CO₂ emissions part.
The state wants to help large families and people with disabilities who need minibuses.
The average tax will decrease from 183 euros to 63 euros. In total, approximately 1.7 million euros less will be paid.