Finland must pursue growth – a windfall tax would be a disservice

 

The outlook for Finnish industry and employment is threatened in many ways. The most important task of the energy policy is now to ensure the supply of reasonably priced electricity. This is the best way to encourage companies to invest in both clean energy and in industrial production in Finland. Adopting a windfall tax would be a setback for Finland in terms of investments, employment and competitiveness.

The windfall tax under preparation targeting nuclear and hydropower would weaken Finnish industry’s willingness to invest and its competitiveness. It would be a significant additional burden for industry in a challenging employment situation. Additionally, the tax would lead to weaker business for export sectors and would further burden the trade deficit.

In the current economic situation, balancing the State budget is no justification for the tax. The Government notes in its programme that the taxation will strengthen economic growth and employment. Levying the tax would be in total contradiction to these goals.

In fact, energy taxation solutions should be treated as (industrial policy) decisions, the feasibility of which should be considered from the entire industry’s perspective. Energy must be seen as a factor that creates prerequisites for future investments for all industry sectors.

See below for the statement regarding the windfall tax, prepared by the Confederation of Finnish Industries (EK), Finnish Energy Industries, Finnish Forestry Industries Federation, Federation of Finnish Technology Industries, and Chemical Industry Federation of Finland.

11/29/2012