The Government decided to increase the tax on electricity used in mining and data centres by transferring it from tax category II to general tax category I as one of the measures to compensate for the shortfall in state tax revenue.
Finland’s Parliament is reviewing draft bill HE 156/2025 vp, which proposes eliminating the electricity tax incentive currently granted to data centres and mining operations.
The proposal proposes to repeal certain sections of the Act on Excise Duty on Electricity and Certain Fuels.
The Government decided to increase the tax on electricity used in mining and data centres by transferring it from tax category II to general tax category I as one of the measures to compensate for the shortfall in state tax revenue resulting from the failure to increase the VAT on sweets and chocolate.
This proposal would implement a change in the electricity tax category for data centres. A separate Government proposal HE 97/2025 vp has been issued on the change in the electricity tax category for mining.
By repealing the provisions of the law, the tax on electricity used in data centres would be transferred from the lower electricity tax category II to the general electricity tax category I, which has a tax of 2.24 cents per kilowatt-hour.
The tax in the lower electricity tax category is 0.05 cents per kilowatt-hour, so the proposed change would increase the tax on electricity used in data centres by 2.19 cents per kilowatt-hour.
The proposed change would increase the state’s electricity tax revenue by EUR 47 million annually at the 2026 level. Since the change would not enter into force until 1 July 2026, electricity tax revenue would accrue in 2026 of approximately EUR 24 million.
The proposal is related to the state budget proposal for 2026 and is intended to be discussed in connection with it.
The law is intended to take effect on 1 July 2026.
