With regard to car tax, the recent reform of the law proposed by the government clarifies, for example, the relationship between tax-free and taxable use of a car, ie the taxable use of a vehicle will usually always result in an obligation to pay car tax.

Thus, changes are taking place, for example, in the situation regarding the import of cars, where the vehicle is put into service before its registration.

However, the proposal does not bring about changes in the amount of car tax itself or other key tax bases.

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However, as a real novelty for citizens, the new Car Tax Act proposes a tax-historically significant removal of the obligation to pay car tax “from a change in the structure of a vehicle that is only detected by measuring the speed of the vehicle”.

In practice, this provision has been applied to tuning situations of light two-wheel motor vehicles, three-wheel mopeds and light quadricycles identified by the police, in which, in addition to fines, a so-called motorcycle car tax.

Thus, the punitive tuning tax collected in the name of a car tax would no longer have to be paid in the future if, for example, a moped is tuned illegally so that only its top speed changes.

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According to the proposal, the reason for the change is that car taxation of tuned mopeds and other small vehicles causes significant administrative work for the authorities and is insignificant from the point of view of public finances.

In 2019, the Finnish Transport and Communications Agency made about 200 payment decisions in tuning cases, and a total of about EUR 25,000 in car tax was collected on the basis of the decisions.

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The development of taxation procedures for excise duty and car taxation is part of a reform, the first phase of which transferred the supply of excise duty and excise duty from Customs to the Tax Administration.

According to the proposal, the new laws would enter into force as a general rule from 1 January 2021.

Mopeds and mopeds are car tax free

Light two-wheel motor vehicles, three-wheel mopeds and light quadricycles are exempt from car tax.

Under the current car tax law, the tax exemption is conditional on the vehicle meeting the conditions of its vehicle category, such as the provisions on structural speed. If these conditions are not met, it is considered to be a “taxable motorcycle or quadricycle falling within the scope of the Car Tax Act”.