Industrial and economic policy

PAM is pursuing an industrial policy that supports the success of the service sectors.

Successful industrial policy strengthens the favourable conditions for business activities and enables renewal in the different sectors amidst the digital green transition. Systematic development strengthens the competitiveness of export industries and lays the foundation for increased productivity in all industries. It also helps companies predict workers’ competence needs in the transformation of the service sectors.

Economic policy must aim for socially and ecologically sustainable growth and well-being. Bold and timely financial policy must be implemented to stabilise cyclical fluctuations and keep as many people in working life as possible. This will safeguard economic sustainability over the longer term.

Changes in the age structure affect the dependency ratio and will pose challenges to the national economy in the coming decades. These challenges cannot be resolved by means of a short-sighted cost-cutting policy. Such a policy will turn against itself if it also cuts the conditions for growth and inclusion.

Tax policy

Sustainable development requires the problems that lie ahead to be solved. These sustainability challenges are also addressed by a fair tax policy.

Public-sector revenues must be increased by growing and streamlining the tax base – that is, by removing unnecessary tax subsidies, tax reliefs and tax allowances, and by ensuring that income and assets generated in Finland are not transferred abroad untaxed as a result of tax fiddles.

The focuses of taxation must be chosen so that the burden is distributed fairly in accordance with the ability to pay and that taxation is effective, so that the well-being generated through services and income transfers funded through taxation is more significant than the negative impact of taxation.

For example, attention must be paid in the taxation of work to preventing situations in which it does not pay to take on (additional) work because of taxation. This can be the case for low-income and part-time workers in particular.

Taxes on consumption are often regressive, meaning that their proportion is higher for people with a low income than those with a high income. Various types of environmental protection taxes are needed to steer consumption sustainably. If such taxes are proportionately higher for people with a low income, this impact must be offset by other taxes or benefits.

In addition to efforts in Finland, issues related to fair tax policy require cooperation at the European and global levels in terms of the taxation of multinational companies and mobile capital.

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