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After no party achieved a majority in April elections, Finland’s Social Democrat party has put together a coalition government, and in early June announced plans to increase taxes by some 730 million euros per year to pay for increased social spending.
Taxes will be increased on gasoline and diesel fuel, tobacco and nicotine, and soft drinks. In addition, the tax credit for household expenses will be reduced.
The government said it will seek to lower personal income taxes by some 200 million euros and increase some benefits to reduce the impact of higher energy and other costs on low income taxpayers.
The proposals are slated for implementation at the beginning of 2021.
Although these are just proposals, observers believe the government will have the votes to pass its tax plan in Parliament.
How This Impacts Mobility
Some tax costs will increase for workers in Finland, and that may increase the costs incurred by companies who station workers there.
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