I just read how middle-income earners in Sweden pay nearly four thousand less in taxes per year than here in this land of fools. That alone would pay for almost a monthly installment on a new, relatively cheap car.
For some, it’s hard to understand that the money simply isn’t there. With these incomes and taxes, it has to come out of other consumption.
It is very possible that abolishing the car tax would be more beneficial for the public economy, because VAT revenues would increase, road safety would improve, and it would also allow for a moderate increase in vehicle usage tax.
The government is currently pushing car buyers toward electric vehicles; as far as I understand, they are already exempt from car tax, which is why a mileage tax is being considered.
For those who have already purchased their (petrol/diesel) cars, a reduction in car tax provides no benefit, and it would be nonsensical to add any mileage taxes on top of annual vehicle taxes and other fees. Well, perhaps as a replacement, but not as an addition.
So, what would be the benefit of abolishing the car tax?
It was mentioned above that it would lead to an increase in the annual vehicle tax, which in its current “temporary” form from the 50s would guarantee the state much higher total tax revenues, especially since the people are so low on funds that the damn lot aren’t buying new cars 
If the car tax were removed, we would have the opportunity to buy cheaper new petrol and diesel cars.
Exactly. This is precisely the point. Perhaps the car tax, which has been levied since 1958, has also caused new cars to always be seen as terribly expensive in Finland—which, of course, they have been. But it is contradictory that while new cars’ CO2 emissions have decreased along with the car tax levied on them, sales of new cars continue to fall. Perhaps another factor is that if you don’t want a plug-in vehicle, you don’t want to buy a new, heavily taxed one either.
This situation has created a downward spiral as new car sales have stalled: VAT revenue is falling, car tax revenue is dropping, importers and authorized dealers are suffering, and ultimately, Finns are driving cars that are among the oldest in Europe. For instance, electronic stability control became mandatory in 2014, meaning there are still a huge number of cars in daily use on Finnish roads that lack this essential safety feature for slippery conditions—of course, that’s no problem for a “pro driver,” since we’re all better than average behind the wheel.
Abolishing the car tax would almost certainly significantly boost the sales of so-called luxury cars in Finland, such as Bentley, Rolls-Royce, Ferrari, etc. While a few are registered in Finland annually, the car tax causes even Finnish buyers to keep them registered in another country, where the car also remains. In these instances alone, VAT revenue would likely be many times the current car tax revenue.
It would certainly increase the registration of the aforementioned cars as new in Finland, as currently the car tax portion quickly reaches six figures. It would also be interesting to see how the potential removal of the car tax would affect the profile of imported used cars (age, model, etc.); aren’t they also subject to car tax, as per the tax authority’s car tax calculator?
I’m probably an exception. I live in the provinces; I don’t know how much the house value has dropped, and I don’t worry about it. It’s our home, we didn’t buy it to sell.
However, I got a new EV a couple of years ago 
My previous used Volvo V70 D5 AWD got to me so badly that it made me buy an EV. It was a 12k car, and during the first 1 1/2 years, €4,500 went into repairs/maintenance.
I think I drove it for about 3 years until the rear end started whining. The repair would have cost about 1,500.
Parts approx. €300 and labor for the rest (I wouldn’t have been able to do it myself).
I traded it in with the fault (I disclosed the fault) for a new Opel Mokka-e.
I got €7,000 for the Volvo.
I’m traumatized. I won’t buy a Volvo anymore, except as a stock.
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In my entire 18-year history of driving, I’ve probably spent about €500 on repairs. Car insurance has been €90–300 a year, depending on the car. If a car passes inspection with some minor work, I’ll fix it, but otherwise, it goes to the crusher and I’ll find a new beater costing €2,000 max. Last time, I scrapped a 2007 Accord when the rear subframe broke.
I refined my index fund saving slightly after all, meaning in the future, it will be €200 to World, €200 to Europe, and €100 to Asia every month. At the same time, I managed to round the €495 to a nice even number; that’s another €60 per year away from consumption, which is a positive thing. Sticking with this style for the next 24-36 months.
It’s interesting to note that even though I’m pumping significantly more funds into index funds every month than into direct stocks, direct stocks already make up 2/3 of my portfolio, but I suppose this is how long-term “Hesuli-holding” (holding on the Helsinki exchange) works. I’ll let things proceed at their own pace in the future as well, while still sticking to my investment plan (in 1.5 years, my investment plan will already be 10 years old, time flies). Over the next couple of decades, as the compound interest effect gathers pace, index funds will take at least that 2/3 share, and I’ll be able to reduce the risk from direct stocks as I get older.
Happy Tuesday to everyone! If the thermal spring hasn’t started yet, at least the dividend spring has!
The rays of reason and enlightenment are reaching ever further into the Helsinki Stock Exchange.
Wow. Devastating. I wish strength to everyone affected.
According to Yle’s information, members of a Somali family. What on earth is going on now?
It’s worth reading the book by financial journalist Andreas Cervenka, a three-time winner of the Swedish Grand Prize for Journalism. This certainly isn’t the whole truth about what’s going on in Sweden, but from a middle-class or middle-income perspective, that envied western neighbor doesn’t seem particularly attractive.
In Finland, especially those who already have significant wealth love to outdo each other in praising Sweden’s economic policy solutions. The same should be done in Finland as well. “The Swedish model.” After reading Cervenka’s book, you certainly understand why this is. The accumulation of wealth in our neighbor has been incredible.
And while some individual solutions might be quite good for a middle-class retail investor as well, it’s sometimes hard to understand why so many long for the Swedish system to be adopted here exactly as it is.
Hi. Where can you get those 10 and 20-ton cars?
My gas-guzzling Citroën weighs barely 1800 kg.
I’d want a proper road roller!
For the car discussion: why I am not buying a new car
I would guess that the electric transition point in particular is what has made many people put their buying plans on hold; they are waiting for the new technology to mature further but no longer want to buy old technology.
Funny how the NYSE barely reacted at all to the Iran situation, but of course Helsinki is in a freefall for the second day straight 
. Apparently, it’s those Finnish engineering firms that have to be dragged down -7% when bombs are dropping in the Middle East.
In QT’s case, the slide is certainly well-deserved, as management doesn’t know how to steer the ship and constantly breaks its promises. I jumped ship back in 2021, fortunately. The share price was around 152 euros then. I started getting too fed up with the bonus schemes, which swallowed a significant portion of the entire year’s earnings.
Now that you can get Salesforce at a forward P/E of around 15, who cares about a Finnish developer shop whose business is just as much under threat?
