On 25 March 2014 Finland is to put through some tax rises and benefits cuts in an attempt to lower the budget deficit. Other Scandinavian countries have VAT rates as high as 25%, and Finland has for some time been considering an increase in VAT. The Finnish VAT rate was increased from 23% to 24% in 2013, but no further increase is to be made.
Instead of a VAT increase, Finland is to increase income taxes on high income taxpayers, and increase the Capital Gains Tax. Spending cuts will be made to child benefits, unemployment benefits and international aid.
