The Finnish government is suggesting a plan whereby the value-added tax (VAT) paid in the earlier part of 2020 could be reimbursed to businesses. The country’s parliament will receive a government proposal in a fast-track procedure.
Read here to understand the situation in Finland better.
The reimbursed VAT would, in fact, become a loan to businesses, the already paid value-added tax of which can be borrowed back. The loan should be paid back to the state within two years.
This proposal aims to weather the storm of the looming economic recession.
According to the Confederation of Finnish Industries, some 20% of employers see bankruptcy as a real possibility, while the country’s gross national product (GNP) is predicted to decrease by around 8% in the second quarter of 2020. (Pekka Vänttinen | EURACTIV.com)