# Estonia raises VAT and plans a car tax to fund defence and the budget

Date: 2023

In 2023–2024 the [Kallas](/people/kaja-kallas) government raised VAT and prepared a motor-vehicle tax while lifting defence spending. It is a completed fiscal act with a household-cost path.

## People

- Kaja Kallas: https://factrail.ai/people/kaja-kallas

## Drivers

- Cost-of-Living Pressure: https://factrail.ai/drivers/econ-cost-of-living-pressure

## Sources

- https://www.oecd.org/economy/estonia/
- https://www.fin.ee/

## Methodology

https://factrail.ai/methodology

Canonical: https://factrail.ai/facts/ee-kallas-tax-rises-2023