Decisions made in the government’s ended budget debate are also reflected in the wallet of the average citizen.
A reduction in early childhood education fees would encourage families with children to take their children to day care and increase employment, according to calculations.
Getting a job would be profitable, which in turn would increase the income level of individuals.
The income threshold for the zero-fee class will be raised, which will bring many new families into free early childhood education, and in addition, early childhood education fees will be gradually reduced for others.
Among other things, energy taxation of peat was tightened.
Taxation of peat will increase next year in 2021 by about 2.7 euros per megawatt hour.
Peat used for district heating production is now taxed at three euros per megawatt hour, and peat taxation will almost double next year.
The economy that uses peat for heating will therefore have to shell out up to half the price next year if taxation flows directly into consumer prices.
Peat has been used for direct heating by a relatively small number of Finnish households, as most of the peat is used for district heating.
In total, the taxation of all heating fuels will increase by EUR 105 million in the first year.
Consequently, heating costs for non-peat households may also increase.
There are impacts on buildings heated by coal, natural gas and fuel oil.
The tightening of fuel taxes will increase the cost of an ordinary oil-heated detached house by about 75 euros a year, the Finnish Federation of Taxpayers calculates.
Tax benefits for employee traffic will be increased.
The charging advantage for electric cars at the workplace and at public charging points will be provided as a tax-free benefit for the years 2021-2025.
The tax value of all-electric cars used as company cars will be reduced.
The taxation of an employee travel ticket will also be simplified and the employment bicycle will become a tax-free benefit up to 1,200 euros.
Income tax will remain the same, however, an index check will be performed.
In other words, taxation remains the same in grades and the amount left in hand does not decrease.
According to calculations by the Confederation of Finnish Taxpayers, taxation of wage earners is tightening by 0.1 to 0.2 percentage points at various wage levels.
Taxation of tobacco and alcohol will increase by EUR 100 million, which will affect the consumer prices of drugs.
In other words, a smoker and a person who consumes alcohol will have to pay more for their tobacco and alcohol.
An increase of EUR 2.5 million is proposed for compensation for reindeer damage caused by large carnivores.
Student meals for students became more expensive in almost all colleges in the fall.
This will be offset by an increase of EUR 4.2 million by the government, which will increase the meal allowance by EUR 0.36.
Consequently, student meals are likely to become cheaper in the spring semester compared to the autumn semester, as the level of meal support will be EUR 2.30 per meal from 1 January 2021.
Compulsory education is extended to secondary education.
In practice, this means changing high school and vocational education for free.
In 2021, EUR 22 million has been set aside for the expansion of compulsory education, and by 2024 the level will rise to EUR 129 million.
This appropriation is intended to cover, inter alia, the free provision of teaching materials and tools for families and the extension of school travel allowances.
Second-rate relief reduces, at least initially, the costs for families with children when it is not immediately reflected in tax increases.
At the press conference, the Board of Directors stated that it is committed to ensuring, among other things, the predictability of corporate taxation and the operating conditions.
This is believed to have a competitiveness-enhancing effect, which in turn is also reflected in employment.
In addition, the government intends to support, among other things, the economic conditions in the Jämsä region by investing in the condition of the Tampere-Jyväskylä line.
The Confederation of Taxpayers finds it disappointing that no tax cuts have been seen.
CEO Teemu Lehtinen states that a balanced overall recovery should also be achieved by reducing taxes.
- The private economy would also need space to rise out of the interest rate pit.
In this respect, the government's budget line is disappointing, Lehtinen says.
- Harmful tax increases would be better understood if they were offset by reductions in income tax.
Now the solution is one-sided, he continues.
Instead, the government receives praise from the union for the clarifying measures taken for the tax treatment of employee benefits.
- Many justified improvements are being made to the taxation of transport employee benefits, which will modernize the system and diversify the options for employers and employees, Lehtinen says.
The news is updated.