Fortum's Tapio Kuula on the Finnish Government's State spending limit discussions: Corporate tax cut supports investments

​The Finnish Government's decision to lower the corporate tax in its midterm discussions on State spending limits supports the business environment and encourages investments in Finland.

"It is positive that in these difficult times the Government found solutions that support investments and economic recovery. Lowering the corporation tax is a clear positive signal," says Fortum's President and CEO Tapio Kuula.

The Government also decided to reduce the revenue target of the planned windfall tax to one third of the original.

"In our current economic environment, the Government has to look for means to balance the budget. To the energy industry, lowering the windfall tax target in this situation also demonstrates support to the investment climate. It does not, however, eliminate the tax's inherent inconsistency with the Government's climate and energy goals as the tax would solely target domestic CO2-free hydro and nuclear power. In practice, this kind of selective tax is also very difficult to implement. With regards to the climate and energy goals, a better solution would be to increase the property tax on power plants," Mr Kuula comments.

Further information:
Mr Esa Hyvärinen, Vice President, Corporate Relations, Tel. +358 40 826 2646