Companies also viewed local agreement 45% and investments in skills and training 39% as significant measures to improve competitiveness and employment rates in Finland. Companies were able to choose their top three choices through the survey.
Companies expect the government to increase job-related immigration 31% streamline licensing processes 28% invest in transportation routes 28% and invest in energy manufacturing and green transitions 27% to improve competitiveness and employment rates.
When the labor market is working, taxation is encouraging, and work is always profitable for those who work and those outside of work. For example, the public finances have been taken care of in Sweden and Denmark, where public finances have been taken care of. There's a labor market, income and social security that encourages work. Finland has fallen behind, but the incoming government has the opportunity to rectify this, said Juho Romakkaniemi, the chief executive of the Central Chamber of Commerce.
The Chambers of Commerce survey found that reducing labor taxes was the most popular tax reduction method. Of those companies, 71% would reduce labor taxes. Companies were allowed to choose their three most important taxes for reduction. In addition to reducing labor taxes, reducing corporate taxes 45% and reducing value-added taxes 37% were viewed as important. At the end of the survey, around 14% of survey respondents said taxes should not be reduced at all.
Romakkaniemi said the incoming government must bring Finland back to the Nordic labor network, where a competitive economy is not stifled by harsh labor taxes.
Finland's labor taxation is one of the world's most progressive, resulting in income traps and weakening work incentives. To maintain competitive globally, the corporate tax system must be competitive, and this requires a reduction in labor taxation. Companies also see that reducing labor taxes is more important than directly reducing taxes related to corporate operations, Romakkaniemi said.
The Chambers of Commerce recommends reducing labor taxes as part of a green tax reform so that the taxation focus is shifted from labor taxes to consumption and environmental taxes.