The two main government perties, the National Coalition Party and the Centre Party. have reached a resolution to a dispute over taxation of forest land. Under the agreement, forest holdings will not be included in relaxations of inheritance taxation. Instead, changes are in store for tax deductions on the sale of timber. Minister of Finance Jyrki Katainen estimates the costs of the proposal to be about two million euros a year. Katainen notes that a new element is that the forest tax deduction will be linked with the forest owner, and not the forest land holding. This encourages the formation of larger units of forest land, encouraging the more active sale of timber. YLE
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