The government is raising the general value-added tax (VAT) to 25.5 percent, from the current level of 24 percent, Helsingin Sanomat reports, citing inside sources.
The one-and-a half-percentage point hike is the government's single largest measure in the budget session ending on Tuesday. The tax hike is expected to channel around one billion euros into state coffers annually.
The 25.5 percent VAT is expected to come into effect no later than the turn of the year, according to HS.
The VAT on food and restaurant meals will remain at 14 percent, as will the ten-percent rate for medicine, accommodation, books and cultural events, according to HS.
Is Finland sliding into deflation?
Hufvudstadsbladet follows up on news that inflation dropped to 2.2 percent in March.
Patrizio Lainà, chief economist at trade union confederation STTK, told HBL that not counting the interest on housing and other loans, inflation is actually only 0.2 percent.
This puts Finland at risk of deflation, a fall in prices that can exacerbate economic weakness, eventually costing jobs.
This downward spiral means financial decisions get pushed into the future in expectation of even lower prices. Low demand means there's less of an incentive to invest.
"There's a risk that the recession will deepen. It doesn't necessarily mean a crisis as bad as in the early 1990s or during the financial crisis. But slow growth can be expected," the economist told HBL.
Russian burgers
Finnish fast food chain Hesburger is in the news again, this time for its Russian connections.
Today 15 former Hesburgers in Russia are now known as Pap'sBurgers. Megagroup, which manages the franchising of these outlets, advertises the use of "high-quality European ingredients."
Iltalehti suggests that these food items, down to the product images, resemble those of Hesburger products — only the names are different. Even the packaging design is identical to that of Hesburger.
Hesburger, however, told IL that Pap'sBurgers does not have the right to use Hesburger's trademark in any way.
When asked, Hesburger told IL it did not have any information on Pap'sBurgers' advertised sourcing of European ingredients.
Following Russia's invasion of Ukraine, Hesburger drew criticism for what some described as a slow withdrawal from Belarus and Russia.
In 2018, the company said it had pulled out of Iran, closing its franchise in Tehran, citing uncertainty brought about by international sanctions.
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