Finland considers kilometer-based road tax model

Finland's road taxation system faces significant potential changes as tax revenues from road traffic are projected to decrease by approximately one billion euros by 2035 if the current structure remains unchanged.

During a recent market council discussion, Hanna Kalenoja, lead transport expert at the Central Chamber of Commerce, presented a model to replace existing taxes—including car tax, vehicle tax, and fuel tax—with a kilometer-based tax. Under a theoretical model where all current traffic tax revenue (just over four billion euros) is collected solely through mileage, the rate would be approximately eight cents per kilometer for passenger cars and just over 21 cents for heavy traffic.

For a typical driver traveling 15,000 kilometers annually, this would amount to 1,200 euros per year, or 100 euros per month. Those in rural areas driving 30,000 kilometers per year could face costs of 200 euros per month. Kalenoja noted that in the Chamber's actual proposal, the kilometer tax would be lower than the eight-cent figure because fuel taxes would be significantly reduced to offset the impact of emissions trading.