VAT increase heavily affected purchasing power – tax revenue EUR 700 million below expectations
The state's budget report shows that the government’s general VAT increase last year has not produced the desired result in terms of the state’s tax revenue. In the middle of general economic uncertainty, the VAT increase was also poorly timed, weakened consumer purchasing power and was burdensome to commerce in Finland in particular. The budding growth should now be strengthened in every possible way.
