HELSINKI: The Finland’s government has raised consumption taxes, particularly on motoring, electricity use and alcohol. Taxpayers Association stated that the government’s total tax take from consumption taxes is now €29 billion.
The report finds that since 2011 the total annual tax take has increased by €2.4 billion. A jump in VAT is responsible for €900 million of that, while taxes on buying, owning and buying petrol for cars have raked in a further €500 million.
On top of that, electricity usage, alcohol and tobacco have all become more expensive thanks to new taxes. Total income from VAT is now €19 billion, with energy taxes raking in €3.9 billion and alcohol taxes €1.4 billion.
The association is arguing that the increases should mark a shift in taxation emphasis away from income taxes, rather than a bump in total tax take. “There are grounds for shifting the emphasis of taxation away from employment and towards consumption and ‘sin’ taxes,” said Leena Savolainen of the association. “Consumption taxes have in any case increased significantly. In future it would be good to reform the tax base to move away from income taxes.”
