Ex’tax recommendations in Finnish Government Programme

In December 2018, The Ex’tax Project, together with its partners GBE and IEEP, presented a Finnish case study, which included a potential scenario on aligning fiscal policy with the Circular Economy Roadmap in Finland.

June 6, 2019, the new government of Finland published the Programme of Prime Minister Antti Rinne’s Government: Inclusive and competent Finland – a socially, economically and ecologically sustainable society.

This program reflects most of the recommendations in the Ex’tax study, including:

  • Introduction of a carbon price floor
  • Removal of the diesel subsidies (transport sector), light fuel oil subsidy and peat tax subsidy
  • Taxation of non-energy use of fossil fuels (mineral oils and other fossil material used in plastics and other chemical industry)
  • Electricity tax increase for bulk users
  • Removal of the subsidy for energy-intensive industries
  • Air passengers and air freight taxes
  • Incineration of waste tax
  • Extraction tax of metal ores and non-metallic minerals,

And using the revenues to:

  • Lower labour taxes
  • Provide income support for the lowest two income quintiles
  • Invest in research and development (R&D) and renewables.

The relevant parts have been marked in this overview: Finland Government Programme 2019 aligned with Ex’tax [pdf].