Details of HS | The government is tightening the taxation of pensioners and high earners

Government intends to tighten the taxation of pensioners and high-income earners, Helsingin Sanomat's sources say.

The government will meet on Monday and Tuesday to decide on a total of about three billion euros in cuts and tax extortions for next year.

Taxation of pensioners is tightened above all by reducing the pension income deduction. The reduction will reduce the tax collection this year by almost 2.4 billion euros, and the reduction is scheduled to be reduced slightly.

The reduction is currently focused on low-income pensioners. Thanks to that, no earned income taxes are paid to the state for monthly pensions of less than about 1,150 euros, if the pension recipient has no other earned income than the pension.

High earners taxation of pensioners and wage earners will probably be tightened with the help of tax scale indexes.

One option is to intervene in the index increases of the upper rungs of the state income tax scale. This would tighten the taxation of wage earners and pensioners compared to a situation where the limits of the tax scale would be increased in the usual way by the increase in the general level of earnings.

The plan to also tighten the taxation of high-income earners was reported earlier Evening newspaper.

In euros the biggest tax extortion is aimed at value added tax. Value added tax is paid on almost all goods and services.

Prime minister Petteri Orpo (kok) confirmed on Saturday In an interview with Ilta-Sanomithat the general value added tax rate of 24 percent will be increased.

However, according to Helsingin Sanomat's sources, it will not be increased by one percentage point, as has been speculated in the public. It is not known whether the increase is lower or higher than that.

The Treasury minister Riikka Purra (ps) has pushed for an increase in value added tax already for this year, but there is no agreement on the matter in the government.