The government plans to tax pensions on “all types of income”.

One of the government's most important disputes under the framework dispute is over pensions. According to government sources, the government is planning to increase the tax levy on pensions.

Pictured in the archive photo are Prime Minister Petteri Orbo, Finance Minister Rika Burra, Education Minister Anna-Maja Henriksson and Agriculture and Forestry Minister Sari Essaya. The four will meet next week for a one-frame fight. Joel Mysalmi

According to information from Iltalehti, the government plans to save on pensions through the fund.

The government will meet on Monday and Tuesday next week for the budget session, where the fiscal framework for the coming years must be locked. A new adjustment target of three billion euros: cuts for two billion, tax increases for one billion.

The pension cuts have been widely publicised. According to Iltalehti, it seems certain that pensions will be interrupted in a legal emergency.

According to Iltalehti, the government's original idea was to freeze the occupational pension code, limiting cuts to small pensioners, but it was difficult to implement.

There are still conflicting reports from government sources about whether there is consensus on which policies are used to allocate savings to pensions.

– Finding a good model is not easy, a government source describes the situation.

The model is looking for its shape

Government sources say the tax hike for pensioners will apply to “all age groups and income groups” – something of a consensus.

According to Iltalehti, the government is considering developing a multi-component retirement savings model.

We are considering a model where all pensions are subject to savings, but pensioners with small pensions are compensated in other ways. Details are open. However, pensions smaller than around €1,100 are not taxed.

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Finance Minister Rika Burra (ps) has spoken publicly about the need to reduce occupational pensions. Prime Minister Petteri Orbo (kok) said on Wednesday Ilda-sanom Pensions will not be cut in the interview, and according to IS, this Orpo means no index cuts.

Orpo's statement can be interpreted as saying that Orpo only knocked out the index cutter, but he left open the possibility of other pension-related measures, such as taxation.

Health tax under negotiation

According to Iltalehti, improving the health tax is in the government's discussions. In particular, the Burra tax has been put into public view.

According to Iltalehti, the office of the Ministry of Health is fighting against the health tax because it is technically difficult to fix the tax. The question of what all goods are to be taxed and on what basis is a difficult one.

The government thinks it can get people's understanding that a health tax is a means of saving money – if it has to tax anything else, it has to tax things that are harmful to health.

The coalition also proposed a health tax last spring ahead of parliamentary elections.

According to Iltalehti, taxation is being considered on a product-by-product basis, which means certain types of products to be taxed will be determined.

Social Security Savings

Helsing's Sanomat newspaper Earlier this week, the government said it would save the social and health department by cutting the 24-hour assisted living care ration for the elderly to 0.55, according to its data. According to Iltalehti, the new duty could be as high as 0.60.

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Currently, the duty is 0.65. The metric is used to determine how many nurses to have per patient. Loosening the measure means that the government cuts funding to welfare areas.

The government's goal in this legislative emergency is to reduce the growth of social security spending by 600-700 million euros, but it is not yet clear whether the target can be met.

According to Iltalehti, the government is also considering raising customer charges and drug taxes. In medical tax, the deduction may increase slightly, but the increase will be staggered, government sources said. The extent of the increase is still open.

Controversy has arisen within the government over raising drug tax, as it particularly affects those on small pensions.

It is also on display to bring about cuts in social welfare organizations' grants, so that they will start early next year. This will save around one hundred million euros. The government has outlined in the plan that subsidies will be reduced from 2027 onwards.

Alvin Lift

It has already been reported that the government is planning to raise the value added tax (VAT) to get more tax revenue for the government exchequer. VAT is a tax added to the price of various goods and services.

Iltalehti was previously informed that Finland is considering raising the general value added tax rate from 24 percent to 25 percent. It's still on the table, but there's a chance it could happen.

According to Iltalehti, the value added tax on food is unlikely to increase.

Iltalehti has already announced earlier that the government is considering taxing the investment income of foundations and AI to raise tax revenue. Until now, they are tax exempt.

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According to Iltalehti, this is still being discussed. Removing the tax exemption of foundations is difficult for RKP, but not impossible.

There is also speculation about the removal of tax exemptions from union membership, but government sources say there has been little talk of this savings mechanism.

According to Iltalehti, additional cuts from development cooperation and immigration spending are on the table at the PS's request.

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