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The Finnish government’s proposal to overhaul real estate taxation has stirred up concerns among a number of experts, reminds Anna-Maja Henriksson, the chairperson of the Swedish People’s Party. (Credit: Mesut Turan – Lehtikuva)
The Finnish government’s proposal to overhaul real estate taxation has stirred up concerns among a number of experts, reminds Anna-Maja Henriksson, the chairperson of the Swedish People’s Party. (Credit: Mesut Turan – Lehtikuva)

 

The Swedish People’s Party is concerned about the effects of a proposed real estate tax reform, particularly on the tax burden of people living in single-family homes.

“The necessary impact assessments have not been conducted when setting out to reform the real estate tax. We cannot accept the risk that people living on small pensions have to move out of their owner-occupied homes as a consequence of a sharp increase in real estate tax rates,” says Thomas Blomqvist, the chairperson of the Swedish People’s Parliamentary Group.

The Finnish government has said the objective of the reform is to align the tax value of properties with their fair value.

Anna-Maja Henriksson, the chairperson of the Swedish People’s Party, reminds that several experts have voiced their reservations about the proposal, warning that it could lead to unreasonable increases in real estate tax rates in certain individual cases.

“The reform could turn out to be unreasonable for taxpayers,” she says.

“Does Prime Minister Juha Sipilä’s government consider it right that a couple living on a small pension in the capital region are forced to sell their home due to the real estate tax hike?”

The Taxpayers Association of Finland and Home Owners’ Association have both similarly warned that the reform could have a negative impact on single-family home-owners. The Taxpayers Association highlighted in its statement on the proposal that real estate tax rates could more than double for the owners of properties in certain areas in Finland.

The Home Owners’ Association, in turn, viewed the government is unjustifiably treating different forms of housing unequally: “It is by no means acceptable that the focus of taxation shifts towards housing and, especially, single-family housing. There is no justification for placing different building types […] in an unequal position relatively to one another.”

The Ministry of Finance published the statements on the proposal in early October. The reform is scheduled for implementation in 2020.

Aleksi Teivainen – HT
Source: Uusi Suomi

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