The Finnish government has outlined a number of temporary measures due to rising energy prices.
the Treasury minister Annika Saarikko (Cen) said at a news conference that the most effective measure is to increase the maximum deduction that taxpayers can apply for on business trips and back.
The maximum reduction for travel expenses between home and work will be temporarily increased from € 7,000 to € 8,400. The increase applies to the current tax year.
In addition, when using a car for business trips, the reduction in travel costs per kilometer will be increased from EUR 0.25 to EUR 0.30.
According to the government, these changes will affect about 570,000 taxpayers.
Exemption for agricultural holdings
Government measures are also planned to provide skilled transport and the agricultural sector as a cushion against rising energy prices.
The government intends to suspend the property tax on agricultural production buildings until 2022, if the measure does not conflict with EU law.
A loan guarantee model that supports climate-friendly investments and an "targeted income and regional support system" prepared for households.
The government also recommends that the cost of housing due to rising energy prices be taken into account by officials when granting income support.
Preparations for a professional diesel fuel tax scheme are also beginning "professional diesel"taxed at a lower price, available for purchase by professional drivers.
Lower tax revenue
According to Saarikko, these measures will not increase public direct spending, but will reduce tax revenues.
The largest reduction already decided, estimated at EUR 140 million, comes from a larger reduction in business travel expenses.
The suspension of the property tax on agricultural buildings will reduce revenues by approximately EUR 10 million.
According to the plan, the provisions for professional diesel fuel will cut the Treasury’s revenue by EUR 300 million.
According to the Minister of Finance, more than 20 European countries have already decided to use various support measures to mitigate the effects of rising energy prices.
Energy prices boosted inflation in January
According to Statistics Finland, inflation was accelerated most by higher prices of electricity and fuels in January. Last month, consumer prices in Finland rose by 4.4 per cent year-on-year.
In December, inflation was 3.5 per cent.
According to preliminary data, euro area inflation was 5.1 per cent in January.
In addition to electricity and fuels, inflation in Finland was also boosted by rising house renovation prices.
Source: The Nordic Page