Finnish newspapers on Friday were filled with coverage on how the new tax changes and cuts announced by Petteri Orpo's (NCP) government will impact taxpayers in various ways.
Kauppalehti reported on the government's decision to eliminate the remote working from home deduction, used by nearly 400,000 Finns starting next year
According to the Finnish Tax Administration, the deduction for remote workers is one of the most popular tax perks. In 2023, 391,295 people claimed it.
The home working deduction amounts to 960 euros for those working more than half of their work hours remotely.
According to KL, the government's decision to remove the tax deduction for union membership fees starting in 2026 has also faced strong criticism from trade unions and left-wing parties.
Bike benefit scrapped?
Meanwhile, a widely read Helsingin Sanomat story reports that government plans to eliminate the tax benefit for company bikes would hurt both bike owners and companies that rent them out.
Introduced in 2021, the tax benefit encouraged many Finns to purchase new bikes, with over 100,000 people taking advantage of the perk at the start of the year. The bicycle benefit is exempt from tax up to 1,200 euros per year.
The employer signs a lease agreement with a company, letting employees choose a bike. The employer covers the monthly lease, deducted from the employee's salary. At the end of the lease, employees can buy the bike, which most choose to do.
According to HS, it is unclear if the removal of the tax benefit will affect existing contracts or just new ones.
"If this proposal were to go through in its present form, it would lead to a decrease in bike sales and services related to company bikes, and eventually result in job losses in the sector," said Tero Era, CEO of bike leasing company Vapaus.
HS reported that those with a couple of years left on their bike payments could end up paying 30 percent more per month.
The government estimates that eliminating the tax benefits for company bikes and the home office deduction will save 70 million euros in 2026.
Era also highlighted the contradiction of removing an exercise incentive while aiming to reduce sick days and extend working careers.
A recent University of Eastern Finland study found that active bike commuters took 4.5 fewer sick days annually.
Euribor eases
Iltalehti reported that a historic 1.7 percentage point drop in Euribor rates is providing significant relief for homeowners.
"Look at that drop!" exclaimed Jan Von Gerich, Chief Analyst at Nordea, as the 12-month Euribor fell from 2.13 percent to 2.02 percent on Monday.
Finland's most popular loan rate has already more than halved from around 4.2 percent in autumn 2023, with the decline accelerating in recent weeks.
IL illustrated an example in which a homeowner with a 100,000 euro mortgage can see their monthly payment drop from 550 to 459 euros following the recent interest rate adjustment, saving 91 euros per month or 1,092 euros annually.
Another example features a young couple with a 300,000 euro joint mortgage. Their monthly savings total 274 euros, or approximately 3,300 euros annually.
According to IL, forecasts suggest this trend is likely to continue.
OP's senior market economist Jari Hännikäinen predicted that Euriobor rates will drop to 1.5–1.8 percent by year-end.
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