Tax Hikes on the Horizon For Finnish Taxpayers
August 17, 2015 Taxation in Finland
HELSINKI – Taxpayers in Finland are likely to see a hike in their everyday expenses, as the government’s proposed budget outlines several tax hikes on essential goods.
Last week the Ministry of Finance of Finland released a proposed budget plan for the coming year, raising the possibility of several tax hikes and cuts to tax credits.
The proposed budget contained hikes to the taxes levied on tobacco, housing, heating, and motor vehicles, with cuts to the tax credits currently available for interest payments on home loans.
Soon after the release of the proposal, the Taxpayers Association of Finland issued an analysis of the changes.
According to the Association, the tobacco tax hike will raise the price of a 20 pack of cigarettes by an average of EUR 0.50 from the current price of EUR6, and in 2017 prices will go up again by the same amount.
The rise in tax on heating oil would result in a real-world price rise of approximately EUR 50 for homes warmed by oil-based heaters.
The tax credit available for payment of interest of home loans would be dropped from 65 percent to 55 percent.
The proposed budget also contained measures to raises taxes on cars by a total of EUR 100 million, a move which, according to the results of analysis by the Association, would lead to a rise of EUR 36.50 per year per car.
However, alongside the tax hike on cars, the government did propose a tax break on low-emission vehicles, leading to tax savings of as much as EUR 200.
Photo By: Ari Helminen