HELSINKI: The tax burden on labourers will be reduced by 415 million euros in line with the competitiveness agreement and the government’s tax relief, according to the finance ministry’s budget proposal. The government will estimate in the draft budget how profitable the competitiveness agreement will be. If 90 per cent of the tax relief is implemented, taxes will be reduced by 515 million euros. The tax relief for the lowest income-earners and pensioners will comprise approximately 130 million euros.
The earned income tax-based index will be adjusted accordingly. This will reduce tax revenues by about 190 million euros. The finance ministry’s budget proposal totals about 55.2 billion euros, with a 5.9 billion euro deficit. The central government’s debt next year will rise to an estimated total of 111 billion euros. The two-day budget session at the finance ministry ended on Thursday. The complete proposal will be released on Friday. The entire government will meet to decide on the budget proposal in August-September.
