News
The article is more than 11 years old

Most Finns would prefer kilometre-based car taxes

The majority of Finns would rather pay a mileage tax for the use of their car than pay up when they purchase a vehicle, according to a new study.

Uusia henkilöautoja autokaupan hallissa. Ostaja ja myyjä neuvottelevat.
Image: Hans Holmgren / YLE

According to a survey ordered by the Ministry of Transport and Communications, 57 percent of respondents said that taxation should move away from being a levy on the purchase price and more towards the form of a consumption tax.

Nearly 80 percent felt that car use in regional areas should be cheaper, for example in locations where a lack of public transport restricts viable alternatives.

There were also marked differences between responses according to region.

The majority of respondents also felt that taxation rates should be higher in congested areas.

“Support for this model is highest in rural municipalities and semi-urban areas. However, also in urban areas, this option attracted nearly 60 percent support,” says Ministry of Transport and Communications spokesperson Marjo Jäppinen.

Distrust related to data collection

Respondents were, however, suspicious of the monitoring of mileage and movement data, with around half expressing reservations on the issue of tracking.

A per-kilometre payment would require some kind of vehicle monitoring system.

Payment based on the actual impact of a vehicle – that is, where, when and how often a car is used – was seen as a viable option for two thirds of respondents. The option of a mileage-based consumption tax particularly appealed to those who drive less.

”People believe that the payment will have a general impact, but not on themselves,” says Tuomo Suvanto, secretary of the transport council working group. ”In particular, this applies to people who drive a lot.”

The survey was carried out by independent market researcher Taloustutkimus in early June and sampled over a thousand Finns.