A turn for the better in commerce, growth must be continued

The development of sales in the commerce sector has been positive in both the retail and wholesale trade since last September. The inflation-adjusted turnover has begun to rise, and the development has continued as clearly positive in early 2026. According to Statistics Finland, the working day adjusted and inflation-adjusted turnover in the retail sector increased by 3.6 per cent in January and by 2.7 per cent in February 2026 when compared to the previous year. The development has also been positive in the wholesale trade: the growth rate was 3.3 per cent in January and, according to preliminary information, the growth rate was 3.0 per cent in February when compared to the previous year.

”The figures are encouraging, but the fluctuations in the global situation increase uncertainty in companies and households. Therefore, the government’s economic policy now needs to provide stability and predictability. We cannot afford to weaken purchasing power by increasing taxation so that the budding growth does not stop,” says Kari Luoto, Managing Director of the Finnish Commerce Federation. 

The Finnish Commerce Federation understands that the government is unable to implement significant recovery measures in this economic situation, but the Federation proposes two decisions to be made in the budget framework session.

Returning the tax credit for household expenses to the 2024 level 

The Finnish Commerce Federation proposes raising the level of the tax credit for household expenses for construction and renovations. For savings reasons, the maximum amount of the tax credit for household expenses for renovation work was reduced from EUR 2,250 to EUR 1,600 in total at the beginning of 2024. The reduction was made at a time when construction was already at the bottom of the economic cycle. This has clearly weakened the willingness of consumers to start renovations, which in turn has been reflected in the interior design and construction trade and employment in the sector.

“Returning the tax credit for household expenses would be a relatively inexpensive and fast-acting way to get renovation projects started and increase demand in the hardware and interior design trade. The direct cost impact of the reform would be less than EUR 100 million annually, but it would pay for itself through increased tax revenue and employment,” says Luoto.

Chinese junk and the flood of parcels must be controlled

At the beginning of March, the Ministry of Economic Affairs and Employment published a working group report presenting solutions to problems related to cheap imports. The report is quite comprehensive and well prepared, but the Finnish Commerce Federation is concerned about how and when the measures presented in the report will be implemented.

In the short term, national and operative measures are emphasised, the promotion of which requires the initiative of several different parties. The most significant long-term plans focus on regulatory reforms at the EU level and the development of structural mechanisms.

The Finnish Commerce Federation proposes that decisions would be made in the government’s budget framework session to promote the following measures presented in the working group report:

• The government commits to active influencing the EU in the ways presented in the report to increase the obligations and responsibility of online platforms for the goods they supply.

• The monitoring cooperation project proposed in the report will be launched without delay and with sufficient resources.

• A working group will be set up in connection with the Ministry of Economic Affairs and Employment without delay, and the stakeholders will be involved in the operations of the working group.

“The explosive growth of e-commerce outside the EU poses serious challenges throughout Europe, distorts competition between companies and jeopardises consumer safety. The problems affect the entire society as we lose tax revenue and, ultimately, jobs. Finnish commerce is not afraid of competition, but we require the same rules for all operators in the commerce sector quickly, and it will be possible to promote this in the forthcoming government’s budget framework session,” says Luoto.

For further information, please contact: Kari Luoto, Managing Director, Finnish Commerce Federation, tel. +358 (0) 400 688 708, kari.luoto(at)kauppa.fi