On 16 April 2024, the Finnish government declared its public finance plan for 2025 to 2028. The finance plan includes specific tax reforms focused on enhancing the sustainability of public finances.
These measures include:
- Raising the VAT and insurance premium tax from 24% to 25.5%;
- Increasing the VAT on chocolate and sweets to 25.5% from 14%;
- Raising the taxes on tobacco, soft drinks, and mining minerals;
- Increasing taxes on hybrid vehicles and electric cars;
- Halting the planned indexation of the top two brackets of the state income tax in 2025;
- Implementing a temporary tax incentive for large industrial investments that support the shift towards a net-zero economy such as hydrogen and battery technologies and the fossil-free steel sectors.
