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Home BUSINESSMunicipalities likely to increase taxes
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Tue, 04 Mar, 2014 12:18:25 AM
FTimes-STT Report, March 4
 
Deputy Managing Director of the Association of Finnish Local and Regional Authorities Timo Kietäväinen. Photo – Lehtikuva.
Timo Kietäväinen, the deputy managing director of the Association of Finnish Local and Regional Authorities, has predicted that municipalities will increase taxes this year.
 
According to Kietäväinen, the municipalities could no longer afford to make savings and there was no likelihood of having new temporary tax revenues.
 
He also acknowledged that municipalities have adjusted their finances responsibly.
 
"Municipalities were able to raise total positive results last year. Unfortunately the improvement is short term,” he said.
 
Kuopio Town Hall. Photo – Lehtikuva.
Kietäväinen explained that the good result was largely because of major savings on local government expenditure and significantly huge account clearance in municipal taxation.
 
According to Kietäväinen, the situation for this year and the following year are very different, as cuts in state's share would directly translate to the municipalities increasing taxation.
 
Kietäväinen said it was regrettable that the proposed government restructure plans on municipalities and social and healthcare reforms seemed to be of no help to municipal problems for the next few years.
 
 
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