The Finnish Parliament voted Tuesday morning to give its final approval to a bill to sharply cut the taxation of profits from the sale of raw timber. The aim of the legislation is to increase availability of raw material for the pulp and paper industry.
Sales tax on wood is to be cut in half through the end of next year, and in 2010, the tax will be 25 per cent lower than it is now.
The measure was passed by a vote of 113 to 45. Most sharply opposed to the measure were members of the Social Democratic and Left Alliance parties.
The Finnish forest industry has expressed concern that Russia’s export tariffs on raw timber, and especially the increases in those tariffs that Russia had planned would lead to a sharp reduction of wood imports from Russia.
Russian Prime Minister Vladimir Putin unexpectedly postponed the implementation of the tariffs in November. However, this offers just a temporary respite, and the forest industry is hoping for significantly greater wood sales in Finland.
Parliament began debate on the government’s draft budget on Monday. The budget debate will occupy Parliament through Friday.
