Tuesday, 26 April 2011
Finnish government tax revenues have grown considerably during the first part of the year. Last winter tax revenues increased from value-added tax and energy taxes. Municipalities have also seen tax revenues rise, with receipts from income taxes up on last year. The Tax Office is also expecting good tax income next month.
Finnish business is now growing again, and this has fed through to the tax revenues seen by municipalities and the central government during the first quarter of this year. The taxman has especially increased takings on value-added tax and energy taxes. Receipts from motoring taxes, income taxes and capital gains taxes have also risen compared with last year.
The increased takings are already more than half a billion euros.
The incoming government now has a little leeway with taxes. The budget deficit must be dealt with, but economic activity will help with that.
But on the other hand, in the long term an ageing population will ensure that public expenditure continues to grow. In that situation it is difficult to see how the situation could be overcome without fiscal tightening or cutting public spending.
By Scancomark.se Team