The Finnish Chamber of Commerce has made a proposal advocating for the gradual abolition of inheritance and gift tax, rather than a sudden removal. This recommendation aims to ensure that the state does not experience abrupt impacts on its tax revenues. Tomi Viitala, a leading tax expert at the Chamber, suggests that a transition period could be modeled after the 1990s, during which the taxation of forestry shifted to be based on sales income with a long transition period, demonstrating successful adjustment that might be replicated in this context.

The proposed plan would allow heirs or gift recipients to choose between continuing with the current inheritance and gift tax system or transitioning to a new model based on capital gains taxation during the transition. In this new approach, the inheritance or gift tax would be eliminated, but the original acquisition cost of the asset would remain intact. Consequently, any asset appreciation that occurs during the previous ownership would still be subject to potential capital gains tax at the point of transfer.

Viitala points out that since capital income tax rates are significantly higher than those on inheritance and gift taxes, this model could provide a more equitable tax regime. The gradual transition would help mitigate any potential backlash from sudden policy changes, ensuring that taxpayer interests and state revenues are both carefully considered in the reform process.