Survey shows majority of Finns support reducing inheritance tax, signaling government for action

According to a recent survey by the Confederation of Finnish Industries (EVA), 52% of Finns support reducing inheritance tax. One in three respondents would opt for significant tax cuts, while about a third prefer to maintain the current rates and over 10% advocate for higher taxes.

Emmiliina Kujanpää, EVA’s chief tax expert, noted that the desire to lower inheritance tax sends a clear signal to the government amid ongoing discussions about tax concessions. Among voters of government parties, two-thirds favor reductions in the inheritance tax, with voters from opposition parties also showing a preference for tax relief, excluding those from the Left Alliance.

The survey, conducted in March through an online panel by Taloustutkimus, involved over 2,000 participants, with a margin of error of 2-3 percentage points. It highlights that the strongest demand for tax reductions comes from Finns aged 36-55, who are likely to be most directly impacted by inheritance taxes.

EVA has mentioned that inheritance tax is often perceived as unfair, as it can lead to practical challenges, especially when the inherited assets are not liquid cash, but rather properties or shares. In some cases, the inherited assets may need to be sold to cover the taxes.

If inheritance and gift taxes are eliminated, the government plans to replace this revenue through capital gains taxation on property or gifts, modeled after Sweden’s tax system. Kujanpää emphasized that ensuring smooth business transitions and supporting domestic ownership is crucial, and inheritance and gift taxes should not act as barriers to generational transfers in business operations.