Tax increase to cover refugee influx

HELSINKI: Finland’s centreright government proposed yesterday to increase taxes on capital gains and on individuals with higher incomes, to cover the costs of refugees coming into the country, its finance minister said.

The move may also counter accusations that tax would largely hitting the poor and middle class.

Finance minister Alexander Stubb said the highest bracket of capital gains tax would be raised by a one percentage point increase in tax, while those earning more than

72 300 (R1.1 million) would be required to pay a solidarity tax for two years. The threshold previously stood at 90 000.

The measures proposed will partly cover the higher expenses of immigration, which are estimated to rise to 114 million this year, he said.

With a budget deficit forecast at 5 billion for 2016, parliamentarians would take a week’s unpaid holiday, while government ministers will forgo a week’s pay. – Reuters