Finland Proposes Reducing VAT on Essentials, Raising It for Public Broadcasting Services

• Finnish government proposes reducing VAT on food and essentials by half a percentage point for 2025 budget
• Reduced VAT rate would decrease from 14 percent to 13.5 percent
• Proposal open for public consultation until 15 August
• Change affects groceries, pharmaceuticals, books, fitness services, and tickets to cultural and sporting events
• VAT on public broadcasting services would increase from 10 percent to 13.5 percent
• New rates would start at the beginning of next year if approved
• Supermarket chains plan to pass savings to customers
• Government expects limited effect on disposable incomes
• Follows last year’s increase in standard VAT rate from 24 percent to 25.5 percent

Source: helsinkitimes.fi

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---