Finland Looks to Raise Taxes by EUR 1 Bil
August 8, 2014 Taxation in Finland
HELSINKI – Finland is looking to hike excise duties, raise the taxes faced by high income earners, and lowering taxes for low income earners, while boosting government revenues.
On August 7th the Finance Minister of Finland Antti Rinne released the first draft of the proposed national budget for 2015, outlining several tax measures intended to raise tax revenues by approximately a billion euros.
The Finance Minister announced that in 2015 the excise duties on electricity, tobacco, confectionery, and fuel will be raised, a move which is expected to bring in an extra EUR 370 million of tax revenues.
Rate hikes will also be enacted on landfill tax and road duty, in order to raise tax collections by an extra EUR 185 million.
Moves will also be made to widen the national tax base, including limiting the tax deductions available for mortgage interest repayments, reducing the deductions for the expenses faced by individuals commuting to and from work, and also cutting corporate tax subsidies.
The tax rate applied on personal incomes will also rise, with inheritance taxes, gift taxes, and capital gains tax all rising by 1 percent, while the threshold for the top rate of personal income tax are reduced from EUR 100 000 to EUR 90 000.
The tax hikes will also be balanced by EUR 13 billion of new tax credits for individuals with low and middle income earners.
Photo By: Lauri Rantala