Government proposes diesel refund as businesses call rate too low

Finland’s government has proposed a tax refund for diesel used by heavy transport, but the Finnish Federation of Enterprises says the proposed rate is too low, Yle reported.

The refund would be 3.3 cents per litre. It would apply to buses and trucks with a maximum loaded weight of at least 7.5 tonnes.

The government intends the refund to take effect when the EU emissions trading system for fuel distribution begins at the start of 2028. The tax support would remain in place until the end of 2037.

The Finnish Federation of Enterprises said the refund was too small and would come too late. “It is good that the professional diesel scheme is moving forward, but a refund of 3.3 cents is too small and 2028 is too late. Businesses need cost relief sooner,” chief economist Petri Malinen said in a statement.

The organisation said the 7.5-tonne threshold would exclude most vans and light trucks used by small and medium-sized businesses. Malinen said a similar solution was also needed for smaller vehicles. The federation has also called for relief that is not limited to heavy transport.