Inheritance tax calculator on a phone screen in Helsinki. LEHTIKUVA
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Most Finns believe inheritance and gift taxes should be reduced, while further increases in value-added tax (VAT) are unwelcome, according to a new survey by the Finnish Business and Policy Forum (EVA).
The findings suggest a shift in public opinion following VAT hikes introduced in autumn 2024.
Nearly 40% of respondents support lowering consumption taxes, including the general VAT rate, while 45% prefer keeping them unchanged. Only 11% back further increases. In spring 2024, before the tax hikes, a quarter of Finns had supported higher consumption taxes.
“Consumption taxes are the heaviest tool in a legislator’s tax policy. With Finland now having the second-highest VAT rate in the EU, the room for increases is gone. Although Finns recognise the need to balance public finances, the high tax burden on consumption is shifting opinion toward reductions, across party lines,” said Emmiliina Kujanpää, EVA’s lead tax expert.
More than half of respondents (53%) favour reducing inheritance and gift taxes. Of these, 35% support significant cuts. Only 13% favour higher inheritance taxes, with backing concentrated among Left Alliance supporters. The majority of voters from the ruling parties, the Centre Party, and the Liike Nyt movement support tax reductions. Even among Social Democratic Party (SDP) voters, 42% back easing inheritance taxation.
Previous EVA studies indicate that many Finns support replacing inheritance tax with a capital gains tax on inherited assets. Sweden abolished inheritance tax in the early 2000s, and a similar reform has wide backing in Finland.
“Despite Finland’s economic challenges, a majority would still lower inheritance and gift taxes. The tax is seen as problematic, especially when inheritances include assets other than cash. Eliminating inheritance tax is not a true tax cut if it is replaced by higher capital gains tax,” Kujanpää said.
Finns are most willing to see tax hikes on alcohol (62%), capital income (50%), and corporate income (42%). Views on capital gains taxation vary significantly depending on whether respondents personally invest in stocks and funds.
The survey gathered responses from 2,018 Finns between 8 and 21 October 2024. The margin of error is 2–3 percentage points. The sample represents the Finnish population aged 18–79, excluding Åland, and was conducted via Taloustutkimus Oy’s online panel. Data was weighted for demographic and political representation. The statistical analysis was carried out by Pentti Kiljunen from Yhdyskuntatutkimus Oy.
HT
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Source: www.helsinkitimes.fi
