Estonian Culture Ministry wants tax exemption for racing, vintage vehicles

TALLINN - Estonian Minister of Culture Heidy Purga has made a proposal to the Ministry of Finance to exempt racing vehicles participating in sports competitions and vehicles that are at least 35 years old and of interest to museums and collectors, also known as vintage vehicles, from the planned vehicle tax.

A racing vehicle may only participate in traffic in connection with registered auto or motorsport competitions and training. Moreover, racing vehicles are not used all year round, so the Ministry of Culture deems it unreasonable to impose an annual tax on them.

"Taxing racing vehicles would create inequality among sports because the state has not imposed a tax on the equipment for other sports. In addition, a motor vehicle tax in the planned form could force less financially secure young athletes to give up the sport," Purga said.

Unlike regular vehicles, racing vehicles cannot be used indefinitely, as staying competitive and meeting the competition and safety requirements set by international umbrella organizations necessitate the continuous upgrading or purchase of new vehicles.

"Therefore, unlike everyday vehicles, racing vehicles are used for a limited time, in specific places, and under certain conditions. The share of racing vehicles among all vehicles is marginal, and thus the impact on the state budget would be insignificant," the culture minister added.

The Ministry of Culture also proposed to exempt vintage vehicles from the vehicle tax. According to the Traffic Act, a vintage vehicle is one that reflects the development of science or technology, has historical and cultural value, and is of interest to collectors or museums, and the manufacture of which dates back at least 35 years.

"The majority of vintage vehicles are stored and are only used on the road a few days a year. Vintage vehicles are subject to special conditions compared to everyday traffic vehicles. They are not a classical means of daily transport," the culture minister pointed out. If the proposal does not find support, the Ministry of Culture requests that at least museum-quality vintage vehicles be exempted from the tax payment