About supporting large families, car tax and life in the country in the middle of tax tornadoes.
Hardi Pikkmets (44) – an agricultural entrepreneur living in the countryside, father of six sons, adds up the numbers: with the changes in allowances for large families and the planned car tax, his family would lose nearly 6,500 euros a year.
“It was extremely nice to hear in January of this year that the subsidies for large families with three to six children were increased by an additional 650 euros, and for seven or more children – by 850 euros, and the income tax benefits were kept,” says Pikkmets. “However, after the Riigikogu elections, the new government coalition rushed to reduce both amounts by 200 euros, and in addition, from January 1 of next year, the income tax exemption for the second or more children will be abolished. According to my modest calculations, this means a total of about 4,000 euros less annual income for our family with many children, but for my brother Siimu, who has nine children, it is actually about 7,000 euros.”
Car tax 2500 euros
But as can be seen from the decisions adopted by the government coalition, it is still not enough for the state that families’ wallets are drying up and now they are also being whipped with car tax. “In my household, according to various calculations, an additional cost of 1,000 to 2,000 euros is expected per year – two cars are perhaps cheaper in the company as work cars, but in addition, there is a seven-seater bus and a car for traveling with a large family, which have lower heating costs, and the amount is already higher for them.
At the same time, living in the countryside, we already pay a higher amount of fuel excise because we drive more kilometers than the average Estonian family in an urban settlement. The nearest village center, where the school is located, is 11 kilometers away, and the nearest town is 47 kilometers away. In the morning, the children usually get to school by public transport, but they still have to drive themselves to kindergarten and training, so the lady is almost always a taxi driver. As a hobby, I take care of 210 hectares of heritage meadows (meadows and mussel pastures), I am also involved in the activities of Mätiku Mahetalu (Mätiku talu is a classic family farm, which is managed daily by mother Helga Pikkmets with her two brothers). I have two tractors and one ATV to maintain the meadows – if you add them, you can spend as much as 2,500 euros in car tax per year.”
The country man has not lost hope
According to Pikkmets, you can’t get by with a smaller number of cars, because firstly, according to the law, a work car cannot be used for personal purposes, but secondly, due to the long distances, every rural family needs at least two cars, a large family also needs a minibus, and if you are still engaged in business, the number of cars also depends on the need. In the country, there is no possibility to travel by public transport every 20 minutes, and sometimes it is not even possible to travel by jeep when the roads are in disrepair. “The money for the repair of national roads was drastically reduced, and since 2010, local governments have been underfunded both in terms of education and road maintenance,” Pikkmets complains. “Unfortunately, people living in the countryside are in the minority and it is extremely difficult to change something in Estonian politics. In my opinion, the worst are the ministers and faction leaders who don’t know their field – after all, that’s only the power of officials! Nowadays, people tend to believe only slogans and do not read at all what the essence of the matter is or what a small tax increase means in the big picture. Let’s add another 2% VAT increase to the picture, which will actually increase the price of the shopping basket by about 3-5 percent.”
But the strong countryman has not lost hope and believes in the stubbornness and peasant mind of the Estonian: “The wisdom of the old people also says – every ram has its own Michaelmas day. However, we will find a way to cope as a big family. What irritates me the most today is that if something is decided, it should be left alone – stability is what saves the economy,” Hardi Pikkmets is sure.
Hardi Pikkmets was born in Oidrema, studied at Lihula Gymnasium, received his higher education at Tallinn University of Technology. Lives on the Tonsi farm in Oidrema and is engaged in the sale of agricultural equipment and agriculture
