Finland’s proposed transport tax reform could introduce congestion charges in major cities, increase taxes on electric vehicles and end state subsidies for regional flights, as the Ministry of Transport and Communications looks for ways to finance the country’s roads, railways and other transport infrastructure.
The proposals are part of recommendations prepared by ministry officials ahead of Finland’s 2027 parliamentary elections. They are not government decisions, but they outline possible changes to transport policy that the next government could consider.
The ministry says Finland needs to reconsider how it raises money for transport as more drivers switch from petrol and diesel cars to electric vehicles. As fuel consumption declines, the government receives less revenue from fuel-related taxes, putting pressure on an existing source of transport funding.
Government figures cited in the recommendations project annual transport tax revenue to fall from EUR 4.9 billion in 2018 to EUR 2.7 billion by 2035.
To address this decline, officials propose linking vehicle taxation more closely to the cost of maintaining roads rather than relying primarily on carbon dioxide emissions. This would increase the tax burden on electric vehicle owners, who currently benefit from lower emissions-based taxation.
The ministry also wants vehicle tax revenue to be directed towards maintaining Finland’s transport infrastructure. The aim is to ensure that the roads and railways already in use receive adequate funding, rather than allowing maintenance needs to grow while new projects compete for limited resources.
Another proposal would introduce congestion charges in the Helsinki metropolitan area, with Tampere also identified as a possible location. Under such a system, motorists could be charged for using selected roads during periods of heavy traffic.
According to the ministry, congestion charges could help reduce traffic congestion and emissions while generating revenue for improvements to urban transport. The details, including the roads covered, charging periods and potential rates, would require further consideration.
Officials also propose examining tolls and other user charges to help fund specific road and railway projects. These measures would form part of a broader shift towards making transport users contribute more directly to the costs of infrastructure they use.
The recommendations place greater emphasis on maintaining existing transport networks than building new connections. Finland’s road and railway infrastructure faces an estimated maintenance backlog of approximately EUR 4.3 billion, highlighting the scale of the work required.
Sabina Lindström, a department director at the ministry, warned that insufficient funding could leave less frequently used roads without adequate maintenance. The concern extends beyond major transport routes to smaller roads that remain important to communities but may attract less traffic.
The proposed changes also cover regional aviation. The ministry recommends ending government purchases of regional air services, which were introduced during the Covid-19 pandemic to maintain selected flight connections.
The state currently spends EUR 20.2 million annually subsidising regional flights. State-owned airport operator Finavia also incurs a further EUR 20 million in annual losses associated with the airport network, according to the figures provided in the recommendations.
Ministry officials argue that continuing to support airports with limited passenger traffic can divert resources from investment in larger airports. Ending the subsidies would change how the state supports regional air connections, although the recommendations do not themselves bring that support to an end.
At the same time, the ministry wants Finland to retain its renewable fuel blending requirements and other transport emissions policies. This position comes as policymakers consider ways to address transport costs while maintaining existing measures to reduce emissions.
If adopted, the proposals could affect electric vehicle owners, daily commuters, regional air passengers and people who rely on road connections outside major cities. However, the scale of any impact would depend on the final design of the measures and the decisions made by the next government.
The recommendations remain proposals from ministry officials ahead of the 2027 parliamentary elections. Any introduction of congestion charges, changes to vehicle taxation or withdrawal of regional aviation subsidies would require political approval and further preparation.
