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Majority of Finns support tobacco tax hike

A recent poll of public perception of a handful of Finnish taxation practices found that a clear majority said they would be prepared to gradually increase Finland’s excise tax on tobacco, but stood in opposition to higher vehicle taxes.

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Vuoden alku on lupausten aikaa. Moni tupakoitsija aloittaa uuden vuoden alussa tupakkalakon. Image: Arja Lento / Yle

A survey enquiring about people’s views on three hypothetical tax breaks and six tax increases in the areas of transport, housing, energy, labour and tobacco was commissioned by the Foundation for Municipal Development.

Over 80 percent of respondents indicated that they would support a gradual increase of the excise tax on tobacco. In 2014 the tobacco tax brought in close to 800 million euros to the Finnish State, a noteworthy contribution. At present Finland is in top quartile of European countries when it comes to tobacco taxation.

A second proposal that received majority support was the idea of a new tax on registered boats and motor vehicles, which 64 percent felt was acceptable. At the same time, the measure that engendered the most opposition was a potential increase in Finland’s already hefty vehicle tax.

Political affiliations influence responses

Party loyalties clearly affected how respondents felt about certain government-imposed taxes. Those who support the current government coalition parties were more positive in their appraisal of taxation than opposition party adherents.

The former were explicitly supportive of a tobacco tax hike, increases in earned income taxation and household service deduction, a gradual reduction of the vehicle tax and the introduction of a new tax on registered boats and motor vehicles. Supporters of the conservative National Coalition Party favoured these measures the most.

Over half of those who indicated that they support the Finns Party would not accept an annual increase to the Finnish vehicle tax. The same amount also strictly opposes an emissions-based tax on electricity and heat production. This in opposition to NCP and Centre Party members who are ready to approve of the tax hikes, even if they are not happy with the general policies.

The TNS Gallup poll surveyed 1001 residents of Finland from the ages of 18 to 75 through the country, with the exception of the Åland islands. The material was compiled in June 2015 and the margin of error is less than three percentage points in either direction.