The present Article, we begin with the subject thatVAT new publication series, VAT-Analyzes. The purpose of the series is to provide the best and in the light of current research data for policy makers and the general publicinformation on economic policy and economic issues. Publications are being prepared in collaboration with VAT experts.

The Analysis: results

The first VAT Analysis goes through the economics of recent years the wisdom and conclusions of tax research on which good tax policy is based is built. We look at how taxation affects households and businesses behavior, and we considered how these findings should be taken into account in the development of Finnish taxation. We also try to seize perceptions in the public debate that we think there are can be repaired. We are proposing to return tax policy to the starting box. Tax policy must base on researched information on the effects of the provisions. Its goals need to be considered again, it must be planned and decision-making must be enabling careful preparation of reforms. With better tax policy the well-being of all Finns can be increased.

The Payment and the Taxes

In addition, the payment of taxes is shown when you make a purchase. The products you buy are always subject to so-called VAT. VAT also controls people’s purchasing behavior, as does harmful taxes. The general VAT is 24%, but the VAT on food, for example, is only 14%. This is intended to guarantee that the price of food is slightly lower.

How do taxes appear in the everyday life of the average citizen?

Almost every time money changes hands or uses some service, paying taxes is a fact. When you get paid, you pay taxes on it. When you buy goods from a store, they are subject to VAT. In 2017, a total of EUR 65 billion in taxes was paid in Finland! These ensure that the state has enough money to run common services. In addition, companies pay taxes on their income. The Lutheran and Orthodox Churches also have the right to collect taxes. Therefore, members of either religion pay the so-called church tax. Thus, the municipal tax share, which is 19.97% on average in Finland, and the church tax share, which is 1.39% on average, is deducted from the salary.

The Crises

It is also important to remember that tax funds also cover the management of various crises, such as those caused by the corona. When the normal state of society is disrupted, then the state and municipalities strive to maintain social peace. For example, subsidies granted to companies to enable them to continue operating have been paid out of tax funds. The small business tax calculator can be used for good there.

Conclusion

It is often heard that taxes are only complained about and talked about in a negative tone. But many times people forget everything positive that taxes have accomplished. That is why paying taxes is important and the duty of every citizen!