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Home BUSINESSTax reductions unlikely to reach target: PM
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Thu, 02 Jun, 2016 12:01:25 AM
FTimes – STT Report, Jun 2
 
Prime Minister Juha Sipilä talked to the journalists in the parliament on Wednesday. Photo – Lehtikuva.
Prime Minister Juha Sipilä on Wednesday said he does not believe that the tax reductions will achieve their maximum goal of one billion euros.
 
The prime minister said the board of the trade union Service Union United (PAM) are aware of the formula for the tax reductions, and that the government has nothing new to offer.
 
“Behind PAM, there are a lot of employees, and it would have a huge effect on the coverage. That coverage has an effect on the public economy. The whole package should be known so that it can be evaluated, but of course, it can also be assessed with different kinds of revenue assumptions,” Sipilä told parliament.
 
He said the government was to assess the coverage together with the labour market organisations on Wednesday evening and later on Thursday within the government. 
 
However, schedules may be delayed, if too much is still open.
 
“The social partners will decide on additional periods of time. We will assess the outcome when it’s ready,” said Sipilä.
 
He hopes that the negotiators now have the stamina to last until the end. 
 
The prime minister expressed disappointment at the fact that the compromise proposal was not satisfactory to the Federation of Finnish Entrepreneurs. This means the extension of local agreements for unorganised companies remains undone.
 
“I think this decision does not make any sense,” Sipilä said.
 
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