The city mayor, Petteri Paronen suggested the hike with the view to narrow down the huge deficit of the city during the recent years. If the proposal is accepted, the rate of income tax will stand at 20.75 percent.
The tax hike will raise the earning of the city authority by EUR 20 million, said the mayor, adding that the authority is also planning to hike another kind of tax in near future.
Paronen said that the authority is also planning to cut cost in various sectors including schools and library.
The deficit of the city corporation was about EUR 7 million in the year 2012 and the deficit would be about EUR 16 million in the current year.
