Parliament’s transport committee has proposed an overhaul to Finland’s system of road tax.
The new system would be based on taxing road users depending on how much they drive, rather than a blanket vehicle registration charge.
The proposed tax would be lower than current levels, but under the measures being discussed, drivers would also face extra charges for road tolls and fuel duty.
Foreign vehicles and public transport would also be subject to road maintenance charges.
Committee chair Kalle Jokinen, from the National Coalition Party, said that a billion euros in revenue from the new taxes would be invested back into public transport.
Social Democrat MP and committee member Merja Kuusisto said she has reservations about the new system. “When this type of new model is introduced, we have to examine carefully who will end up paying the charges. Unemployed people and those on small incomes can’t necessarily afford to buy a car, so I see it as very important to support the role of public transport too,” she said.
Residents in built-up areas and regions with poor transport links would pay a reduced vehicle usage charge under the measures being discussed. Transport Committee chair Kalle Jokinen says this measure would mean vehicle and fuel taxes do not discourage people from taking a job that requires commuting some distance.
The conversation will be followed closely among the car sales industry. Sales of new cars fell by around 7 percent between 2012 and 2013. Used car sales also fell during the same period by around the same amount.
A report submitted to the Transport Ministry by former Nokia CEO Jorma Ollila last year suggested a pay-as-you-drive system based on satellite tracking devices installed in every vehicle, that would send details of a car's movements to the tax authorities.
