Several cities in Finland to increase parking fees ahead of VAT rise

Several cities in Finland are considering or have already decided to increase parking fees in response to an upcoming rise in the value-added tax (VAT), effective from early September. The general VAT will increase from 24% to 25.5%.

In Rovaniemi, parking fees will rise by €0.20, bringing the hourly rate to €2.20. Similarly, in Oulu, the city-owned parking company will increase fees by €0.10, making the new rate in facilities like the Kivisydän rock parking €2.70. Oulu’s parking company CEO, Jouko Väänänen, stated that the fee hike was necessary to avoid unexpected losses due to the VAT increase, which could disrupt the budget for the year.

In Kuopio, discussions are underway for moderate increases in parking charges, with the city’s parking company board scheduled to meet next week. Kuopio’s parking CEO, Vesa Saramäki, emphasized the importance of adjusting rates in light of the VAT hike and the city’s financial situation.

Tampere has not yet adjusted its rates but is evaluating the matter, with traffic engineer Pekka Stenman noting that parking in the first zone has not seen an increase for several years. Currently, the price for on-street parking in the city center is €3.20 per hour, potentially rising to about €3.50 in the future.

Conversely, some cities like Joensuu have recently raised their parking fees and do not plan further changes this year. Many smaller cities in Finland continue to offer free parking, such as in Kajaani, Kouvola, and Kemi, where there are no paid parking spaces. Changes to parking fees at airports and railway stations have yet to be confirmed.