EK's Häkämies on tax fluctuations: "They create uncertainty"
Jyri Häkämies of EK expresses concern over tax policy fluctuations, urging for predictability in business decisions.
Jyri Häkämies, the CEO of the Confederation of Finnish Industries (EK), has voiced his concerns regarding the unpredictability of tax policies in his comments to Iltalehti. He highlighted that recent statements from the Social Democratic Party (SDP) and the Centre Party indicate the possibility of retracting the planned decrease in corporate tax from 20% to 18%, which is set to take effect next year under Prime Minister Petteri Orpo's government. Häkämies emphasized that such fluctuations in policy create instability, which is detrimental for businesses that rely on predictability for their operations.
Häkämies criticized the practice of altering tax expectations during electoral cycles, suggesting it complicates the landscape for companies trying to forecast their financial futures. He noted that while it is common for political parties to promise changes during elections, this can clash with the need for stability that businesses require. As Finland faces challenging economic conditions due to rising debt levels, Häkämies warned that the ongoing debate around taxes might further exacerbate uncertainty among enterprises.
The CEO's remarks underscore a broader tension between the political commitments made during elections and the realities that businesses need to navigate. The call for more predictable tax policies is not just a plea from the business community; it reflects a deeper concern about how government actions can impact economic growth and entrepreneurship in the country. As the political climate evolves, especially with impending elections, maintaining a consistent tax framework will be critical for fostering a conducive business environment in Finland.