Finland Times

New cars in a showroom in Vantaa on Tuesday. Photo – Lehtikuva.

The car tax reduction programme written in the government programme will go ahead as planned, decided the Cabinet Committee on Economic Policy on Tuesday.

 
The four-year car tax reduction programme which favours low CO2 emission cars will be implemented from the beginning of next year.

As by the plan, the tax reduction is envisaged to remain the same every year.

Based on the government programme, the car tax is calculated to have a tax return effect of approximately 200 million euros during the parliamentary term stretching to 2019.

Photo – Lehtikuva.

The reduction on the taxation depends on the emission of the car. Low emission cars will be subjected to higher tax relief.

The average emission of cars sold in the country today is approximated at 124 grams per kilometre. At this rate the tax relief in relative terms will be 13 per cent.

High emission cars with emission levels over 140 grams per kilometre will not enjoy tax relief.

Motorcycles will not be subjected to tax relief because of lack of information on their emission.

The Finnish Central Organisation for Motor Trades and Repairs welcomed the swift move by the government.

 

The expectant mood was visible in the car trade over the recent weeks, said the organisation’s managing director Pekka Rissa.

“Now the users can be told when what is happening. Users have been on standby whether this will happen once or in four years,” Rissa said.

According to Rissa, the amount of tax relief would touch on most of the new cars sold in the country.

 

The average emissions have fallen markedly in the recent years. “Still in 2007, the average emission was 180 grams. Compared to this, we have come down ferociously,” Rissa added.