Raising taxes on heating fuels
Acts amending the annexes to the Act on Excise Duty on Liquid Fuels and the Act on Excise Duty on Electricity and Certain Fuels
Excise duties on heating fuels, power plant fuels, and fuels for non-road mobile machinery will be increased from the beginning of 2018. The change will raise the price of fossil fuels and district heating generated using them.
- Status
- Passed
- Submitted
- 12 Oct 2017
- Latest event
- 13 Dec 2017
- Votes
- 9
- Speeches
- 62
- Confirmed
- 19 Dec 2017
- Statute
- 972/2017
- Source
- eduskunta.fi ↗
What is proposed
The calculation basis for the carbon dioxide tax on heating fuels (such as light and heavy fuel oil, coal, and natural gas) will be raised from 58 euros to 62 euros per tonne of carbon dioxide, and the energy content tax will be increased by 0.45 euros per megawatt-hour. Taxation on solid biomass, biogas, and fuel peat will remain unchanged.
What it means
The change will enter into force on 1 January 2018 and increase net central government tax revenue by approximately 45 million euros a year. Fuel costs for an oil-heated detached house will rise by about 43 euros a year and for a district-heated detached house by about 9 euros a year. The tax increases fall particularly on the district heating sector (15 million euros), building-specific heating (10 million euros), as well as construction, industry, and agriculture.
How Parliament voted
2nd reading · 8 Dec 2017Parliament passed the act by 163–21.
Only the Christian Democrats and the Finns Party against. 15 MPs were absent. Minutes ↗
Filled dot = yes, ring = no, grey = absent. The seating plan at the time of this vote is not archived, so MPs are grouped by party in indicative seats.
A passed act does not enter into force immediately: the President of the Republic confirms it, and it enters into force on the date set in the act. This act was confirmed on 19 Dec 2017.
Debate in the chamber
What was argued and where each group stood, followed by MPs' speeches verbatim from the parliamentary record. Speeches are shown in their original language.
62 speeches · 3 debates
Key points of the debate
The debate addressed tax increases on heating and machinery fuels and their impact on citizens' housing costs and climate targets. The government parties and parts of the opposition supported the carbon dioxide weighting of the tax increase to reduce emissions and fund tax cuts on labour. The proposal sparked controversy particularly over the situation of low-income households with oil heating, the lack of support and advisory measures, and the tax treatment of peat.
- Will the tax increases unreasonably increase housing costs for ordinary people?
- Should direct financial subsidies for phasing out oil heating be provided alongside the tax increases?
- Should the taxation of peat also have been increased for climate reasons?
- National Coalition PartyIn favour
National Coalition Party (NCP) supported the proposal because it shifts the focus of taxation from labour to taxing harmful effects and emissions, and promotes the transition to lower-emission heating methods.
”Tällä tavoitellaan kannustamista vähäpäästöisten lämmityspolttoaineiden käyttöön ja samalla pyritään parantamaan maakaasun kilpailuasemaa suhteessa kivihiileen.”
— Petteri Orpo - Centre PartyIn favour
Centre Party (Cen) supported the proposal for climate policy and fiscal reasons, while emphasising the importance of domestic energy sources and peat for security of supply.
”Käsittelyn pohjana olevassa esityksessä on kysymys valtion tuloista ja toisaalta ilmastopolitiikan ohjauksesta, ja minusta tähän kysymykseen pitää paneutua nimenomaan tällä tavalla.”
— Timo Kalli - Blue ReformIn favour
Blue Reform (Blue) supported the proposal, as the increases were seen to steer towards cleaner fuels and fall proportionately most on high earners without significant negative income distribution effects.
”Tämän ratkaisun myötä öljyn hinta väistämättä tässä nousee kotitalouksille, ja muiden ratkaisujen myötä sitten muut vaihtoehdot tulevat kannattavimmiksi.”
— Simon Elo - Finns PartyAgainst
Finns Party (Finns) opposed the proposal and called for its rejection because the increases raise housing costs for Finns and place an unreasonable burden on low-income pensioners and agriculture.
”Näiltä osin esitänkin, että nämä ehdotukset hylätään vastalauseen mukaisesti.”
— Ville Vähämäki - Social DemocratsIn favour with reservations
Social Democrats (SDP) considered the environmental goals of the proposal commendable, but criticised the rise in housing costs and called for incentives and grants to phase out oil heating in addition to mere tax increases.
”Puhemies, haluan tässä puheenvuorossa nyt vakavasti kiinnittää huomiota siihen, että tälläkin esityksellä on vaikutuksensa ihan tavallisten ihmisten asumiskustannuksiin.”
— Pia Viitanen - GreensIn favour with reservations
Greens considered the tax increase and its carbon dioxide weighting a step in the right direction, but criticised the measures as insufficient and called for cutting tax subsidies for peat and taking further action to phase out oil heating.
”Tämä hallituksen esitys on lähtökohtaisesti aivan kannatettava ja hyvä. Käytännössähän tässä painotetaan hiilidioksidiveron tapaisesti veronkorotusta.”
— Hanna Halmeenpää - Left AllianceIn favour with reservations
Left Alliance (Left) supported tightening carbon dioxide taxation in principle, but expressed concern about the livelihoods of low-income earners, called for subsidies for energy renovations, and criticised leaving the taxation of peat unchanged.
”Pidämme vasemmistoliitossa hiilidioksidiverotuksen kiristämistä tervetulleena suuntana.”
— Li Andersson
This digest was generated by AI from 62 speeches 13 Sep 2026. Group positions are read from the speeches, not from votes; quotations were checked verbatim against the record.
Keskustelu päättyi. Asia lähetettiin valtiovarainvaliokuntaan.
Yleiskeskustelu päättyi ja asian käsittely keskeytettiin.
Keskustelu päättyi ja asian käsittely keskeytettiin.
Stages of consideration
The bill's path from the preliminary debate to the decision, as recorded by Parliament.
- 12 Oct 2017Eduskuntakäsittelyn vireilletulo · Valtiovarainministeriö
- 17 Oct 2017Lähetekeskustelu · Täysistunto
- 22 Nov 2017Valiokunnan mietintö tai lausunto · valtiovarainvaliokunta
- 1 Dec 2017Ensimmäinen käsittely · Täysistunto
- 8 Dec 2017Toinen käsittely · Täysistunto
- 12 Dec 2017Eduskunnan vastaus ja kirjelmä
Decisions by law proposal2
- 1Laki nestemäisten polttoaineiden valmisteverosta annetun lain liitteen muuttamisestaHyväksytty · 972/2017 · 19 Dec 2017
- 2Laki sähkön ja eräiden polttoaineiden valmisteverosta annetun lain liitteen muuttamisestaHyväksytty · 973/2017 · 19 Dec 2017
Proposed law text
The law proposals in the bill as the Government presented them. The final act may differ after committee consideration.
The law text is shown in Finnish or Swedish from Parliament's official documents; it is not translated into English.
1.Laki nestemäisten polttoaineiden valmisteverosta annetun lain liitteen muuttamisesta
Eduskunnan päätöksen mukaisesti muutetaan nestemäisten polttoaineiden valmisteverosta annetun lain (1472/1994) liite, sellaisena kuin se on laissa 1176/2016, seuraavasti:
§
Tämä laki tulee voimaan päivänä kuuta 20 .
2.Laki sähkön ja eräiden polttoaineiden valmisteverosta annetun lain liitteen muuttamisesta
Eduskunnan päätöksen mukaisesti muutetaan sähkön ja eräiden polttoaineiden valmisteverosta annetun lain (1260/1996) liitteen verotaulukot 1 ja 2, sellaisina kuin ne ovat laissa 1177/2016, seuraavasti:
§
Tämä laki tulee voimaan päivänä kuuta 20 .
Main content of the bill (official)
The summary and title were produced with AI on 2 Sep 2026. They are not official documents – check the details in the original bill. The title and summaries are machine translations of the Finnish AI summaries. Speeches and quotations are always shown in their original language.