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Government rolls back property tax hike plan

A government proposal to raise the lower limit of the property value tax on dwellings was called off Tuesday, according to daily Helsingin Sanomat. The government said it already reached its target for property tax income.

The minimum limit of property taxes will not rise. Image: Ismo Pekkarinen / AOP

Heads of government parties decided on Tuesday that they would cancel a proposed hike on property taxes, daily Helsingin Sanomat reported on Wednesday.

The decision to drop the tax increase rests on the fact that government's goal for property tax income has already been reached.

Another plan to raise the upper limit of the tax, however, remains in place.

Had government stuck to its original proposal, 55 municipalities would have been forced to hike property taxes on residential properties, and 170 municipalities would have had to raise their property taxes based on land area.

The original idea was to raise the lowest band of the property tax from 0.41 percent to 0.45 percent, and the tax on land plots from 0.93 percent to 1.03 percent.

If implemented, the change would have amounted to 49 million euros in added tax earnings for 2018, and some 16 million for the following year.

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