Abolishing quality-based diesel tax reductions
Act amending the annex to the Act on Excise Duty on Liquid Fuels
Quality-based tax reductions for paraffinic diesel oil and ethanol diesel will be phased out. As a result of the change, the tax on diesel fuel will rise and central government tax revenue will increase.
- Status
- Passed
- Submitted
- 5 Oct 2020
- Latest event
- 20 Nov 2020
- Votes
- 2
- Speeches
- 21
- Confirmed
- 27 Nov 2020
- Statute
- 886/2020
- Source
- eduskunta.fi ↗
What is proposed
The 5-cent-per-litre energy content tax reduction for paraffinic diesel oil will be abolished in three stages in 2021–2023 (1 cent in 2021, 2 cents in 2022 and 2 cents in 2023). At the same time, the 4-cent-per-litre tax reduction for ethanol diesel will be abolished in one go from 1 January 2021, as renewal of the vehicle fleet means there is no longer any justification for tax support based on local emissions.
What it means
Once fully implemented, the change will increase central government tax revenue by approximately 115 million euros a year. The pump price of diesel is estimated to rise by an average of about 3 cents per litre by 2023, which will increase costs for the transport sector and other business sectors as well as expenses for diesel drivers. For example, annual fuel costs for a full-trailer combination vehicle will increase by around 600 euros for each one-cent change in price.
How Parliament voted
2nd reading · 17 Nov 2020Parliament passed the act by 33–24.
Government yes, opposition no. 142 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 27 Nov 2020.
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.
21 speeches · 9 speakers · 2 debates
Key points of the debate
The debate centred on the phased abolition of the tax reduction on paraffinic diesel oil and its impact on fuel prices. The government parties considered the subsidy outdated and contrary to EU rules, whereas the opposition opposed the proposal, viewing the timing as wrong and driving up costs for businesses and motorists. The proposal sharply divided Parliament along government and opposition lines.
- Is the tax subsidy for paraffinic diesel outdated and contrary to EU law?
- Was the timing during the economic and coronavirus crisis wrong for tightening fuel taxes?
- Will the increase in diesel taxation disproportionately undermine the competitiveness of the transport sector and industry?
- Social DemocratsIn favour
The tax subsidy for paraffinic diesel has lost its justification with the development of vehicle technology and has become contrary to EU law. Abolishing the subsidy will generate needed tax revenue to fund public services and crisis measures.
”Kaiken kaikkiaan objektiivisesti arvioiden tämä verotuki on muuttunut tällä hetkellä perusteettomaksi ja näin EU-oikeuden vastaiseksi verotueksi.”
— Pia Viitanen - Centre PartyIn favour
The tax subsidy has become obsolete as engine technology has become cleaner, and there is no longer an environmental justification for it. Phasing out business subsidies that have become pointless is justified and responsible tax policy.
”Todettakoon ensinnäkin se, että parafiinisen dieselin verotuelle ei ole enää perusteita, kun otetaan huomioon ajoneuvoissa tapahtunut päästöjen puhdistusteknologian kehitys.”
— Esko Kiviranta - National Coalition PartyAgainst
Abolishing the tax subsidy will raise fuel pump prices and punish motorists, the transport sector and industry at the worst possible stage of the economic crisis. The proposal should have been rejected and dealt with only as part of a broader tax reform.
”Näin ollen siis kyllä tämä todella tulee näkymään myös tuolla liikenteessä ja niissä kustannuksissa, mitä ihmiset tästä joutuvat maksamaan.”
— Matias Marttinen - Finns PartyAgainst
Continuous increases in fuel tax undermine business competitiveness, drive up transport costs and increase regional inequality.
”Me emme kyllä taaskaan saa Suomea missään nimessä ylös nousemaan tästä suosta tällä jatkuvalla verojen nostolla.”
— Sheikki Laakso - Christian DemocratsAgainst
Raising costs in the middle of a crisis harms businesses and consumers, and because of the ageing vehicle fleet, support favouring cleaner fuels would still have been needed.
”Aluksi haluan kannattaa edustaja Marttisen tekemää vastalauseen 2 mukaista hylkäysesitystä.”
— Sari Essayah
This digest was generated by AI from 21 speeches 13 Sep 2026. Group positions are read from the speeches, not from votes; quotations were checked verbatim against the record.
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.
- 5 Oct 2020Eduskuntakäsittelyn vireilletulo · Valtiovarainministeriö
- 7 Oct 2020Lähetekeskustelu · Täysistunto
- 6 Nov 2020Valiokunnan mietintö tai lausunto · valtiovarainvaliokunta
- 13 Nov 2020Ensimmäinen käsittely · Täysistunto
- 18 Nov 2020Toinen käsittely · Täysistunto
- 19 Nov 2020Eduskunnan vastaus ja kirjelmä
Decisions by law proposal1
- 1Laki nestemäisten polttoaineiden valmisteverosta annetun lain liitteen muuttamisestaHyväksytty · 886/2020 · 27 Nov 2020
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.
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 1554/2019, seuraavasti:
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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.