Finland Times

Prices of tobacco and confectionery products are likely to increase in 2015 following the hike in excise duties on them.

The Ministry of Finance on Thursday afternoon published the full budget proposal for the coming year which also showed an increase in electricity, fuel and road taxation.

The increase in excise duties and road taxation will earn the public coffers more than 550 million euros.

Fuel oils used for heating and powering ships are also up for tax increment next year.

Based on the draft budget 2015, the government is looking forward to balance spending cuts and tax increases.

The new taxation policy seems to focus on environment and health-based taxation while at the same time reducing labour-based taxation and entrepreneurship.

The upper tax limit on capital income will be increased to 33 per cent from 32 per cent while the progressive limit on capital income will be reduced to 30,000 euros from 40,000 euros.

The much debated “solidarity tax” will remain in place until 2018. However, the current threshold of 100,000 euros will be lowered to 90,000 euros.

Inheritance and gift tax will be raised by one percentage point. The deductibility of interest on housing loans will be reduced while interest deductibility on student loans will be scrapped.

In addition, the proposed additional pension income tax credit will cost the state about 70 million euros.