Finland slashes taxes to lure investors and fund defence

Minister of Social Security Sanni Grahn-Laasonen (Confederation of Finnish Socialists) admits that Finland is already at a competitive level in terms of corporate tax.

Finland slashes taxes to lure investors and fund defence

The plan includes cutting the corporate tax rate from 20% to 18% and reducing personal income tax by €1.1 billion.

The Finnish government wants to stimulate the economy and is lowering corporate income tax to 18 percent.

Iltalehti found out what really happened behind the scenes of the budget cuts. At the heart of everything is one goal that was pushed through in the negotiations. There is also a larger plan in the background about the direction Finland is taking. The atmosphere in front of the Government's banquet hall in Smolna on Wednesday evening was expectant, as the announcement of the decisions dragged on and on. Even after six o'clock in the evening, the…

At the same time as the Lithuanian government plans to increase corporate and personal income taxes, the Finnish government is taking the opposite step - reducing both taxes, despite temporary budget losses. These are necessary measures to enable Finland to compete more effectively for investment and stimulate economic growth, the Finnish Prime Minister claims.

The government decided on the spending limits and growth measures for the remainder of the election period, including major tax cuts. The value-added tax on food will be reduced and the maximum duration of housing loans will be increased.