Finnish government will support citizens amid rising energy prices

The Finnish government is preparing a series of economic measures in response to rising energy prices, the country’s Finance Ministry said Friday.

“The government has outlined a series of temporary point measures in response to rising energy prices. The measures will target personal and commercial vehicles and agricultural entrepreneurs, among others. These measures include both short-term and longer-term measures,” the statement said.

In particular, the tax on electricity for industry and agriculture has been reduced since the beginning of 2021 and will remain low.

“In 2022, consumers will be able to pay about 370 million euros less for electricity than in 2020,” the Finance Ministry said.

The threshold for the vehicle tax deduction will change. The maximum deduction will increase from 7 thousand euros to 8.4 thousand for all of 2022. When using private vehicles for commercial purposes, the amount of compensation will increase from 25 cents per kilometer to 30 cents for the entire current year.

These changes will affect about 570 thousand taxpayers, the Ministry of Finance.

Also under consideration is the possibility of a tax deduction for parking personal cars on trips to work.

For rural areas will be canceled property tax on agricultural buildings, provided that this measure complies with EU norms. If this measure is not possible, the government will prepare a number of other mechanisms, the Ministry of Finance specifies.