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A Kilometer Tax Is Proposed for Motorists – Vehicle Tax Would Also Increase

Summary by Ilta-Sanomat
Palta wants to keep the car tax collection at the old level. More money could be collected based on kilometers driven.

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Palta wants to keep the car tax collection at the old level. More money could be collected based on kilometers driven.

·Helsinki, Finland
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Palta wants a new usage-based tax on traffic.

Service sector employers Palta has developed a detailed road traffic tax model, which shifts the focus of taxation from buying and owning a car to using it. Tax reform is needed because transport tax revenues are threatened to decline rapidly as motoring becomes more electrified at the same time as the road network repair debt grows. In Palta’s model, the real accumulation of tax revenues collected from road traffic would be stabilized at the 20…

Palta has developed a detailed road traffic tax model, which shifts the focus of traffic taxation from buying and owning a car to using it. The new tax could be based on kilometers driven, for example. The background is that the traffic tax base is eroding under the current model.

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Ilta-Sanomat broke the news in Helsinki, Finland on Wednesday, October 21, 2026.
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