Finland cuts taxes to boost growth

Helsinki [Finland], April 24: The Finnish government announced sweeping tax reforms on Wednesday, aimed at boosting growth and strengthening the country's global competitiveness.
Prime Minister Petteri Orpo said the top marginal tax rate on earned income will be lowered from 57 percent to 52 percent. The cuts are part of a broader plan to reduce taxes across all income levels, with a particular focus on supporting low- and middle-income earners. The state income tax reductions are expected to total around 1 billion euros (1.13 billion U.S. dollars) annually.
To improve the business climate, the corporate tax rate will be reduced from 20 percent to 18 percent. Orpo said the measure is intended to attract investment and help Finnish companies compete internationally.
The government also outlined several long-term policy goals alongside the tax changes. These include raising the share of young adults completing higher education to 50 percent of their age group, increasing defense spending by 3.6 billion euros by 2029, and expanding funding for internal security.
Orpo said the reforms aim to encourage work, raise purchasing power, and position Finland to succeed in the global competition for investment and jobs.
The Chamber of Commerce welcomed the reforms, while the Central Organisation of Finnish Trade Unions (SAK) criticized them, warning they could lead to lower state revenues and higher national debt.
Source: Xinhua News Agency