Petteri Orpo (NCP), the Minister of Finance, on Tuesday said revisions to the tax system are needed to bring low-emission and emissions-free cars within the reach of ordinary consumers. (Credit: Vesa Moilanen – Lehtikuva)


THE NATIONAL COALITION has declared its willingness to abolish the car tax collected upon the first registration of a motor vehicle in Finland.

The party published its new climate and environment programme yesterday, proposing that the car tax be abolished entirely in an attempt to encourage consumers to switch to vehicles not fuelled by diesel or petrol.

“We have to make it possible for consumers to make a choice and make it worthwhile for them to choose a car that is not fuelled by fossil fuels,” said Minister of the Interior Kai Mykkänen (NCP).

Petteri Orpo (NCP), the Minister of Finance, stated that, in addition to abolishing the car tax, the vehicle tax on low-emission and emissions-free cars should be lowered substantially in order to bring such cars within the reach of ordinary, middle-income consumers.

“That will allow us to modernise our vehicle stock quickly,” he added.

The Finnish government has adopted the objective of halving the use of fossil fuels in transport by 2030.

The National Coalition on Tuesday admitted that the electrification of transport is key to meeting the objective but added that it is also eager to promote the use of biogas cars by introducing a subsidy to encourage motorists to convert their cars to operate on biogas. Biogas, it argued, is “an excellent alternative particularly when it is produced from excess agricultural manure”.

The most notable change proposed by the party is nevertheless the abolition of the car tax, as it currently generates annual revenues of over 900 million euros.

The National Coalition stressed that the objective of shifting the focus of taxation away from car purchases towards car emissions should be to ensure cars powered by biogas or electricity are invariably the more competitive option for consumers no later than in the 2030s.

Aleksi Teivainen – HT
Source: Uusi Suomi