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New Fuel Tax to Favour Low Emissions

The Ministry of Finance has agreed to a compromise in reforming the fuel tax. For instance, the price of diesel fuel is to rise by about eight cents a litre, while the annual flat tax on diesel vehicles will decline. Plans are for to leave the gasoline tax unchanged.

Polttoainepumppu
Image: YLE

One option that was under consideration was to drop the flat tax in exchange for a sharp increase in diesel fuel. Final decisions on the changes which would take effect next year are to be made in the autumn budget talks.

“With cars, the flat tax will go down in such a way that drivers of diesel cars will come out ahead. a separate report is underway on heavy transport,” says Minister of Finance Jyrki Katainen.

The aim of the change is to favour low-emission vehicles.

“No great profits or losses are in store for diesel cars. the greatest beneficiary is the one who tanks up with pure domestic biodiesel or bioethanol,” Katainen notes.

Sources: YLE