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Finnish Government Public Finance Plan for 2025 to 2028 Including VAT Increase and Other Tax Measures

18 April 2024

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Proposed Changes

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Finland

The Finnish government has announced agreement on its public finance plan for the years 2025 to 2028, which includes certain tax changes to improve the sustainability of public finances. The measures include: Increasing the VAT and insurance premium tax rate from 24% to 25.5%; Increasing the VAT rate on sweets and chocolate from 14% to the new 25.5% rate; Not carrying out the indexation (increase) of the top two state income tax brackets in 2025; Extending the tax support for zero-emission company cars; Increasing the vehicle taxation of electric cars and plug-in hybrids; Increasing the mining mineral tax, tobacco tax,...