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Govt to scrap vehicle tax hike on light motorbikes and moped cars

Government is looking to roll back a planned vehicle tax hike on light motorcycles and moped cars, says Prime Minister Juha Sipilä. According to Sipilä a proposed tax increase due to take effect from next May will only apply to larger vehicles.

Owners of moped cars and light motorcycles won't face higher vehicle taxes if the government goes through with its plan. Image: Anne-Mari Rajala / Yle

Government had previously proposed increasing the vehicle registration tax in a bid to collect more revenues. The plan would have put an additional 50 million euros into state coffers from taxes collected from boats and light vehicles such as small motorcycles and moped cars.

However Prime Minister Juha Sipilä says his administration is now looking to roll back that proposal. It means that the tax hike – which is due to take effect from May next year – will only affect larger vehicles.

"The matter is still not settled and is being finalised, but an initial position has been reached that on the lower end of the scale moped cars and light motorcycles would be exempt and that upwards of that would be taxed,” Sipilä said Sunday during a Centre Party delegates’ conference in Tornio.

The PM said that Parliament’s Economic Policy Committee had already adopted a preliminary position on the issue.

"We have determined where tax revenues accrue and we have built up different models. We have decided on this strategy for further development."

Delegates attending the party conference raised the issue of the tax on light vehicles after voicing concerns about possible increasing transportation costs facing young people in rural areas.

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