Reducing labour taxation strengthens purchasing power – commerce is satisfied with the tax decisions of the mid-term negotiations

The Finnish Commerce Federation thanks the Government for its decision to reduce income tax by approximately one billion euros in all income brackets. Since previous labour tax reductions have been targeted especially at lower incomes, the incentive of taxation means that the reductions are now also justified for higher incomes.

“Improving the purchasing power of Finns is essential for boosting economic growth and supporting employment in the service sectors,” says Kari Luoto, Managing Director of the Finnish Commerce Federation.

The slight reduction of half a percentage point in VAT on food, books and medicines, among other things, strengthens the impact of income tax reduction on purchasing power.

The reduction in corporation taxation to 18% was also a welcome tax decision, as it supports all companies, regardless of their size or industry.

The Finnish Commerce Federation is also pleased with the progress of the company restraining order and the decision to simplify the taxation of key employees and to extend it to Finnish returnees.

For further information, please contact:

Kari Luoto, Managing Director, Finnish Commerce Federation, tel. +358 (0) 400 688 708, kari.luoto(at)kauppa.fi