Finance Minister: low-emission cars could pay zero car tax

Would you buy a low-emission vehicle if you didn't have to pay tax on it? That could be a future incentive.

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File picture of cars on highway / Credit: iStock

Finance Minister Petteri Orpo (NCP) has said that car tax could be abolished for low-emission vehicles within the next ten years.

Speaking on MTV Uutiset, he said that one of the quickest ways to get more people using low-emissions cars would be to offer an incentive like paying zero tax.

Transport is one of Finland’s biggest polluters, and the average age of Finnish cars is 12 years. The country is committed to Paris Climate Agreement goals of reducing passenger car emissions 35% by 2030.

“If we are able to significantly reduce the tax on passenger cars, then it would really allow regular drivers in Finland to switch to low-emission cars” says Orpo.

There could instead be more taxes on cars that are still spewing out harmful emissions.

“The more we put a price on polluting vehicles, the less motivation there is to use them, and it guides consumption habits and car purchased towards low-emissions” Orpo says.