Finnish town trials tax break to encourage baby boom Finnish town trials tax break to encourage baby boom

Finnish town trials tax break to encourage baby boom
27 Feb 2018

A small town in Finland is trialling a tax holiday for families with new-borns in an attempt to combat the ageing of its small population.

Municipal leaders of Sulkava in southwest Finland, which has 2,600 residents, said the tax break would take the form of a one-off annual refund of municipal taxes contributed during the year. The plan means that a family with a €3,000 (US$3,694) monthly income would be entitled to a lump sum payment of roughly €6,600 (US$8,126), representing taxes paid during the course of a year, according to Uutiset.

The tax holiday would only be granted for the year in which the baby is born and is expected to come into force from this year. For parents to be eligible, Sulkava must be the place of their baby’s birth as well as their place of residence. In addition, the parent or parents must list the town as their place of residence both in the year preceding the baby’s birth and on the last day of the year in which the baby was born.

Local municipal leaders expect the proposal to be passed. The town already pays a municipal home care allowance to families with children. But local leaders felt the incentive was not sufficiently attractive to encourage people to boost the town’s flagging population.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

A small town in Finland is trialling a tax holiday for families with new-borns in an attempt to combat the ageing of its small population.

Municipal leaders of Sulkava in southwest Finland, which has 2,600 residents, said the tax break would take the form of a one-off annual refund of municipal taxes contributed during the year. The plan means that a family with a €3,000 (US$3,694) monthly income would be entitled to a lump sum payment of roughly €6,600 (US$8,126), representing taxes paid during the course of a year, according to Uutiset.

The tax holiday would only be granted for the year in which the baby is born and is expected to come into force from this year. For parents to be eligible, Sulkava must be the place of their baby’s birth as well as their place of residence. In addition, the parent or parents must list the town as their place of residence both in the year preceding the baby’s birth and on the last day of the year in which the baby was born.

Local municipal leaders expect the proposal to be passed. The town already pays a municipal home care allowance to families with children. But local leaders felt the incentive was not sufficiently attractive to encourage people to boost the town’s flagging population.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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