According to the State Economic Research Center VATT, the annual propulsion tax on diesel cars should not be waived.

The agency's response relates to a citizens' initiative calling for the abolition of the diesel car propulsion tax, which ended up in Parliament about a year ago with the third highest number of signatures ever.

  • Read more: Exactly 125,439 citizens demanded the abolition of diesel car propulsion tax

“There is no reason, based on research data, to tax diesel used by households more lightly than petrol used by households. The propulsion tax can therefore be seen as part of a vehicle tax aimed at tax harmonization. Although the propulsion tax cannot fully equalize the tax levels of household vehicles using different propulsion systems, VATT considers that the pursuit of uniform taxation of household motor vehicles favors maintaining the propulsion tax on diesel vehicles, ”the statement submitted to Parliament states.

  • Read more: Sitra broadcasts a “floor price” to Finland - the intention is to keep diesel, which is depreciated by the corona, expensive enough in the future

The opinion to the Tax Division also states that if the propulsion tax were abolished and the tax subsidy for diesel were maintained, the cost of using a diesel passenger car would decrease and the share of diesel cars in cities could increase.

According to VATT, this cannot be considered desirable, as a possible shift in the focus of propulsion would increase harmful particulate emissions, which are also harmful to health, in densely trafficked and densely populated urban and urban areas.