Finland Proposes Raising Two Tax Rates to Balance Spending

Finland is looking to raise value-added tax and insurance premium tax rates in an effort to balance its public spending, under a finance ministry proposal announced Tuesday.

Both rates would increase by 1.5 percentage points, bringing both the general VAT rate and the tax on insurance premiums to 25.5%, from the current 24%.

The proposed increases aim to “improve the sustainability of the public finances and create the conditions for reducing the growth of indebtedness,” the ministry said in a press release Tuesday.

• Comments on the proposed rate increases are due by May 17, and the government is expected ...