Skip to content
The article is more than 7 years old

Yle's list of everyday effects of proposed 2017 budget changes

Prime Minister Juha Sipilä’s centre-right government presented its budget for the coming year on Thursday. It will hand over the plan to parliament at the end of the month for consideration. The Finnish Broadcasting Company Yle compiled a list of the proposed changes that will likely affect the everyday lives of Finnish residents most.

Budjettikirja 2017
Image: Laura Kotila / Valtioneuvoston kanslia


Reduced taxation for wage earners

A person making 3,305 euros a month will pay 235 euros less in annual taxes.

Reduced taxation for pensioners

A person receiving 1,600 euros a month in earnings-related pension will pay 120 euros less in annual taxes.

Domestic help credit will be raised five percent

For 1,000 euro’s worth of work, the increase from 45 to 50 percent will bring a 50-euro benefit.

Deductibility of interest paid on mortgage will be lowered by ten percent

The deductable proportion will fall from 55 to 45 percent, meaning that a 100,000-euro loan at 1.5 percent interest would qualify for 45 euros less.

Tobacco tax will rise

The price of a pack of cigarettes will rise from 6 euros now to 6.50 euros next year.

Tax on sweets eliminated

A chocolate bar costing 2.20 now will only cost 2 euros in 2017.

Car taxation will be eased

A car that cost 32,000 euros with average emissions will be 210 euros cheaper next year.

Motor vehicle tax will be increased

The motor vehicle tax on passenger cars will go up by approximately 36.50 euros per year.

Petrol tax will go up

A litre of 95 E10 petrol will become 2.5 cents more expensive.

Generational changes in businesses and farms promoted with reduced inheritance and gift taxation

Tax on a 100,000-euro inheritance will go down by 800 euros, while a tax on a 20,000-euro gift will go down by 170 euros.

New entrepreneur deduction of five percent as business incentive

The change will bring a 50-150-euro benefit to most small business owners and a 1,700-2,900 benefit to larger businesses.


Across-the-board cut to virtually all benefits

A cut of 0.85 percent will be made to every 100 euros received in benefits.

Cut in duration of unemployment security

Earning-related unemployment security will drop from 500 to 400 days. For people with fewer than three years of experience on the job, the period will fall from 400 to 300 days.

Student financial aid will be cut

Payments of study aid to higher education students will fall by a maximum of 87 euros monthly.

Study loan guarantee from the central government increased

Maximum loan amounts will climb from 400 to 650 euros per month

Higher education students will be transferred to the general housing allowance scheme

Housing allowances will be a maximum of 201 euros monthly with a partner’s income having no affect on the sum granted. University students in Helsinki on the other hand will receive a maximum of 400 euros per month, but their partner’s income will be taken into consideration in judging the sum of the allowance. 

Early education fees for low-income families will go down

The payment for a single parent earning 2,200 euros monthly will fall by 59 euros a month to just 33 euros monthly.

Cuts to drug reimbursements

State reimbursement for medicine used to treat Type II diabetes, for example, will fall from 100 percent of the price to 65 percent.

Remuneration for family care to increase

The minimum wage of home carers will increase by at least 775 euros monthly, an 80 percent increase.

Family caregivers granted more free days

People caring for a disabled family member will be entitled to at least two free days per month. Those that supply 24-hour care will receive three free days per month.

Latest: paketissa on 10 artikkelia