Teemu Lehtinen, CEO of the Confederation of Finnish Taxpayers, considers the state budget proposal for next year to be uniformly gray.
The government's budget solution has a strong stimulus grip as a result of the protracted interest rate crisis, with a budget deficit of EUR 10.7 billion.
- However, the draft budget is one-sided.
It is a mere public stimulus, it lacks a tax stimulus for private households.
That’s what people can do with their own money.
It shines with its absence.
For example, an increase in the household deduction would have had a positive effect, Lehtinen sees.
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Lehtinen emphasizes that the government's budget line was disappointing, especially for the private economy.
- The private economy would also need space to rise out of the interest rate pit.
It would have been desirable if the draft budget would have made it possible for the cash registers of shops and services to squirm more with money from private households, Lehtinen summed up.
Now, according to the proposal, next year's state budget can bring citizens a total of more than 400 euros in loss of income and additional costs per year.
Taxation of wage earners will be tightened slightly (change in the tax rate by 0.1-0.2 percentage points), which means a loss of income of about 80 euros a year for the average wage earner.
For lower-income earners, the change in the tax rate is 0.2 percentage points, and, for example, a salary of EUR 2,327 per month is lost on an annual basis of EUR 60 and on a salary of EUR 3,490, EUR 80 is lost.
In the larger grades, the change in the tax rate is only 0.1 percentage points.
According to the calculation of the Central Association of Taxpayers, for example, with a monthly salary of EUR 5,817, the drop is EUR 70 per year and with a monthly salary of EUR 9,308, the annual earnings will be EUR 110 lower.
- In the big picture, there are no winners or losers in wage earners.
It’s not very relevant if the job just stays the same.
The same applies to pensioners.
If the home municipality raises its municipal tax rate, then it is a different matter, Lehtinen says.
Excise tax increases are floundering more.
Thanks to the increase in the tobacco tax, the central association of taxpayers estimates that the price of a pack of tobacco will rise by 45 cents per box, which means that a person who smokes a day will have to pay 164 euros more a year for smoking.
Those who smoke a day use more than 150 euros more tobacco a year. Photo: Laura Ukkonen / Lehtikuva
Alcohol also leans a little. Photo: Vesa Moilanen / Lehtikuva
For example, the increase in the tax on alcoholic beverages will increase the price of medium beer by three cents per small can and the price of a bottle of wine by 20 cents per bottle.
In other words, a person who enjoys, for example, a sixpack of middle beer and a bottle of wine a week will consume about 20 euros more alcohol a year in the future.
The tax subsidy for paraffinic diesel is estimated to increase the price of diesel at service stations per cent per liter, ie the additional cost of driving a diesel car about 30,000 kilometers a year - and using about 1,500 liters of diesel - is 15 euros per year.
The price of diesel is estimated to rise by a cent per liter.
There are a few dozen cost increases per year for those who drive a lot. Photo: Roni Rekomaa / Lehtikuva
The tax increase for heating fuels, on the other hand, is calculated to increase the heating costs of an oil-fired medium-sized detached house by about 75 euros per year.
The heating costs of oil-heated detached houses are rising. Photo: Ilkka Mäkinen
- Taxation on health and environmental damage is typically tightened, Lehtinen stated.
The cut in the interest rate deduction on mortgages is known to reduce the tax benefit by more than EUR 300,000 by EUR 23–90.
The biggest carrots in the budget proposal are related to changes in employee benefits such as changes in the tax value or charging benefit of electric cars, an increase in the tax-free portion of employee travel tickets, or an employee bicycle benefit.
However, only a few citizens can enjoy them.
- The winners of the budget proposal will enjoy these employment benefits.
The effect can be on the middle income several hundred euros a year, Lehtinen describes.
Lehtinen sums up that for an ordinary non-smoking working citizen who hardly consumes alcohol and does not live in a detached house and does not have a mortgage, the effect of the budget proposal will be a few tens a year.
- However, the increase can be significant if the costs are cumulative.
A small sum grows from small streams if you smoke a lot, like to spend time in bars, live in a large mortgage-financed oil-heated detached house and drive a car that uses a lot of diesel, Lehtinen sees.
In this case, the various tax increases affect the annual economy by more than 400 euros.