Valka locals register in Estonia to avoid foreign car tax

Take note – story published 7 years ago

Several locals at the Valka border town have started to register their place of residence in what appears to be an attempt to avoid paying the recently introduced tax on the use of cars with foreign plates, Ingūna Johansone of the Ziemeļlatvija daily told Latvian Radio Wednesday.

In December 2016, 23 Valka locals changed their official place of residence to a foreign one and it's highly likely that they're now registered in Estonia, said Johansone.

For locals driving a car with Estonian plates, there are two scenarios. "You have to either register outside Latvia and register in Estonia, or register the car in Latvia and pay an extra €250 [a month]," said Johansone.

There's also uncertainty over people registered in Latvia but driving work cars with Estonian plates. 

People registered as living abroad pay taxes to other countries and not to Latvia.

This year Latvia introduced a tax for driving cars with foreign plates. It costs €10 a day, €250 a month, €600 per six months and €1000 per annum. 

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