Lowering the reduced VAT rate

Key points of the debate

Parliament debated lowering the reduced VAT rate from 14 per cent to 13.5 per cent. The government parties considered the proposal a measure that improves purchasing power and strengthens the economy, whereas most of the opposition criticised erratic tax policy and considered it unlikely that the tax cut would be passed on to consumer prices. The proposal sparked considerable disagreement over the allocation and impact of tax revenue.

• –Will the half-percentage-point tax cut actually be passed on to consumer prices?
• –Should the lost tax revenue have been used to reduce taxes on labour or support small businesses?
• –Does repeatedly changing tax rates cause unreasonable inconvenience to businesses?

• National Coalition PartyIn favour

  Lowering the tax rate supports people's purchasing power, curtails inflation, and improves operating conditions for businesses.

  ”Pienempi arvonlisäverokanta tukee ostovoimaa ja vähentää hintapaineita juuri niillä aloilla, jotka ovat monelle suomalaiselle arkipäivää.”

• Finns PartyIn favour

  The tax cut leaves money in circulation and benefits the national economy either through falling consumer prices or through the strengthening of businesses.

  ”Näen kuitenkin perusteltuna sen, että pyrimme alentamaan verotusta, vaikka se sitten kilpailun kautta lopulta määräytyisikin, millä suhteella ja kelle se raha sitten palautuu.”

• Swedish People's PartyIn favour

  The tax cut promotes purchasing power and particularly benefits companies in the tourism, restaurant, and service sectors.

  ”Det här är frågan om en ändring som stärker köpkraften, stöder företagens verksamhetsvillkor och lindrar kostnadsnivån något.”

• Social DemocratsAgainst

  The small cut is unlikely to be reflected in consumer prices and will instead boost retailers' profit margins, and the room for tax cuts should have been used to lower taxes on labour and raise the VAT threshold for small entrepreneurs.

  ”Siksipä tämä 140 miljoonaa euroa, jonka tämä muutos vähentää valtion verotuloja, olisi järkevämpää käyttää toisaalla, esimerkiksi työn verotuksen alentamiseen tavallisten suomalaisten osalta.”

• Centre PartyIn favour with reservations

  Lowering food prices is in principle commendable, but the tax policy was criticised for being erratic and for favouring large retail chains over small businesses and producers.

  ”Me keskustassa suhtaudumme aina myönteisesti ruuan hinnan alentamiseen, varsinkin silloin, kun voidaan olla varmoja, että siitä sitten hyötyvät ennen kaikkea suomalaiset kotitaloudet”

• GreensAgainst

  Repeated tax changes cause an administrative burden for businesses, and instead of a half-percentage-point cut, taxes on medicines, culture, and public transport should be returned to 10 per cent, and the tax on books reduced to zero.

  ”Vihreät peruisi hallituksen esityksen laskea 14 prosentin arvonlisäverokanta 13,5 prosenttiin.”

• Left AllianceIn favour with reservations

  The group supports lowering the tax rate as such, but considers the measure inadequate and calls for a reduction in the standard VAT rate as well as returning culture, medicines, and public transport to the 10 per cent rate.

  ”Vasemmistoliitto kannattaa esityksessä esitettyä 14 prosentin alennetun arvonlisäverokannan laskemista 13,5 prosenttiin.”

This digest was generated by AI from 35 speeches 13 Sep 2026. Group positions are read from the speeches, not from votes; quotations were checked verbatim against the record.