News
The article is more than 13 years old

Caravan enthusiasts unenthusiastic about new tax proposal

The new government is weighing whether to introduce a hefty car tax on caravans. According to caravan enthusiasts such a tax would be a counterproductive measure which would hurt the caravan and camping tourism industries, and could ultimately reduce government tax revenue.

Matkailuautoja Caravan-kaupan edessä.
Image: YLE / Liisa Koivisto

Today, caravans are subject to a vehicle tax, but now government thinks it could bring in revenue of up to 30 million euros by introducing a heftier car tax on caravans.

Antti Saukkonen, director of the Finnish camping association fears that this could have dramatic consequences on caravan use and that the government must think again.

"The government forgets that mobile homes cannot be compared with ordinary cars. They are vehicles used for overnight stay and are usually driven much less than cars," Saukkonen said.

The mobile home industry is currently doing well in Finland. The number of new caravans has steadily increased and Finland is the caravan-densest country in Europe, with 79 campers per one thousand inhabitants - a total of 44,000 camper vehicles.

Tax losses

But the car tax could bring an end to the thriving business, as the average mobile home price is expected to rise from 65,000 to 85,000 euros if the tax is implemented.

This is something many will not be able to afford, Saukkonen said.

If a new car tax is implemented, Saukkonen said he thinks sales would decline by 90 percent, which already happened in Denmark when similar taxes were introduced.

"We're concerned that this would lead to drastically reduced use of mobile homes and would hit camp sites which are completely dependent on the caravans," Saukkonen said.

According to calculations by caravan organizations the government already reaps some 20.5 million euros in tax revenue annually from caravan vehicle taxes.

With the car tax, this could drop to 2 million euros, because so few will be able to afford a mobile home, Saukkonen said.

Caravan enthusiasts unenthusiastic about new tax proposal

Many people at the Rastila campsite agreed that it is unfair to begin taxing mobile homes more aggressively, and say it wouldn't bring in more money.

Mobile home owner Eero Ollikainen said he doesn't believe introducing a new tax on caravans would increase revenue in the long run.

Ollikainen is one of the many caravan enthusiasts who sets up at a camping site in Finland during the summer, and then drives down to Spain for the winter.

"I think many caravan owners are considering registering their car in some southern European countries as a reaction to this crazy decision," Ollikainen said.

Sources: YLE