Estonia’s new motor vehicle tax and registration fee, which were introduced as of 1 January 2025, generated total revenue of EUR 151mn in 2025, ERR reports. Registration fee revenue totalled EUR 64.2mn in 2025, which was more than 50% less than the projected EUR 137mn. Meanwhile, revenue from the motor vehicle tax was close to forecast at EUR 87mn. In the first quarter of 2026, registration fee revenue amounted to EUR 17.7mn, which was up EUR 5.8mn from a year earlier. The Finance Ministry expects annual registration fee revenue to reach EUR 82mn in 2026. The government’s plan is to raise the registration fee further in 2028 and 2031. However, the parliamentary opposition has vowed to abolish the car tax altogether.
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