Next year wage-earners are set for reductions in tax that will increase their take-home pay. Tax percentages are set to fall by between 0.5 and 1.2 percentage points.
Teemu Lehtinen of the Taxpayers' Association of Finland said that this would help increase purchasing power in 2024, for the first time in three years.
"Now the most important thing is that we get extra purchasing power both through pay increases, and also this time through tax cuts for wage-earners," said Lehtinen. "They will help start getting the economy moving and also improve employment."
In 2023 purchasing power hit a 15-year low, but cost-of-living increases in wages and tax changes might help provide a bit of relief for wage-earners.
Someone on the average wage of around 3,800 euros will receive around 20 euros a month more next year thanks to the tax cuts.
The largest tax cuts, however, will go to higher earners. Those making more than ten thousand euros a month will receive around 80 euros a month more in 2024.
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High earners will also benefit from a higher threshold for the so-called 'solidarity tax' paid by those in the highest income deciles.
In total income tax cuts will reduce government revenue by around 100 million euros.
The government is also planning cuts in transfer tax due when property is sold, from four percent to three percent on property and from two percent of the purchase price to 1.5 percent when buying and selling shares in a housing company (a common way to own homes in Finland).
There will also be changes in the taxation applied to fossil fuels, but Lehtinen said the final impact for consumers may be difficult to discern given the large fluctuations in petrol prices due to other factors.
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