Govt moves to renew corporate subsidies

The government has taken a move to bring reform in the corporate subsidies.

As a part of the move, the government on Wednesday appointed a working group to create a roadmap in this regard, said an official press release.

The work will be based on earlier studies on corporate subsidies, including tax credits, carried out by the Ministry of Employment and the Economy as well as on other available research data.

The position of internationally competitive lines of business will also be assessed in the process.

The roadmap will provide a commonly accepted long-term plan for a corporate subsidy system which is explicit, promotes the regeneration and productivity of businesses, is cost-effective for the public economy and takes into account the goals of the energy and climate strategy.

The process will consist of two phases. In the first phase, by 15 December 2017 the working group will list the current subsidies that should be reduced. In the second phase, the working group will list the general principles of how to redirect the resulting funds for the development of the corporate subsidy system. The new system is expected to take effect gradually between 2019 and 2023.

Headed by Mika Lintilä, Minister of Economic Affairs, Ministry of Employment and the Economy, the 14-member working group included Hanna Sarkkinen, MP, Left Alliance Parliamentary Group, Kaj Turunen, MP, Blue Reform Parliamentary Group, Teuvo Hakkarainen, MP, Finns Party Parliamentary Group, Peter Östman, MP, Christian Democratic Parliamentary Group, Harri Jaskari, MP, National Coalition Party Parliamentary Group, Mauri Pekkarinen, MP, Centre Party Parliamentary Group, Lauri Ihalainen, MP, Social Democratic Parliamentary Group, Emma Kari, MP, Green Parliamentary Group, Mats Nylund, MP, Swedish Parliamentary Group, Terhi Järvikare, Director General, Ministry of Finance (Secretary-General), Ilona Lundström, Director General, Ministry of Employment and the Economy (Secretary-General), Sanna Ruuskanen, Director of Unit, Ministry of Transport and Communications, Marja Hilska-Aaltonen, Senior Adviser for Forestry, Ministry of Agriculture and Forestry.