Intense debate on tax increase in Vantaa

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The Chairman of the Vantaa City Board, Matti Virtanen (Social Democrat), regards a tax hike of at least 0.75 percentage points in next year’s budget as unavoidable. "Whether the final increase is one whole percentage point, which is likely to be proposed by Mayor Juhani Paajanen, or a quarter less, is to be seen in two weeks when the Mayor’s proposal will be published", says Virtanen. Currently, the municipal tax rate in Vantaa is 17.75%.
      Virtanen also states that if a sufficiently large increase is not decided upon now, there will be pressure to have several tax rises in the course of next year.
     
The City of Vantaa’s problem is that its tax revenues will apparently be EUR 15 million less than estimated. According to Virtanen, the committees’ drafts for next year’s budget have remained in the set frame quite well.
      The Vice-Chairman of the City Board, Kalevi Helppolainen (Nat. Coalition), rejects the proposed hikes: "We will absolutely not approve of the draft. We would have expected proposals to finally improve the city’s financial structure. All that has been proposed so far is to increase taxes and to sell the city’s productive property".
      The second Vice-Chairman of the City Board, Sirpa Pajunen (Green League), reminded others that the Green League had proposed a reasonable hike in taxes already years ago. "In order to secure the public services, we would now need at least as large an increase as the Chairman of the City Board has proposed."
      On Monday, the City of Vantaa Board chose the negotiators of the City Board, the City Council, and of the city personnel to debate the budget proposal. The City Council will decide on the budget as well as on the financial plan on October 25th.


Links:
  City of Vantaa

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