Finland Times

Vanhanen, who acts as the chair of Suomen Keskusta (Centre Party) parliamentary group, pointed out that the country is facing its largest ever tax reform in history. This is the

case, according to Vanhanen, if the onus of collecting approximately euro10 billion in tax income by municipalities shift to the state.

According to Vanhanen, the transition is complicated since municipal taxes are collected on flat rate basis while the state taxes are progressive.

“This represents a great deal of structural change in taxation,” Vanhanen said at a Centre Party parliamentary group gathering in Helsinki.

The tax reform, at the same time, offers an opportunity to evaluate the consequences of taxation on equity, employment and environment, among other things, Vanhanen said.