Government proposes to extend the subsidies for purchasing electric cars and converting cars until the end of December

On 7 October 2021, the Government submitted a legislative proposal to Parliament to extend the subsidy for the purchase of electric cars and the conversion of passenger cars to run on gas or ethanol by one month, until 31 December 2021.

The current legal provisions concern the purchase and conversion subsidies for which applications are submitted by 30 November 2021. The Government's objective is to enable households to apply for the purchase and conversion subsidies until the end of December 2021. Favouring vehicles with lower emissions, the purchase and conversion subsidies are helping to modernise Finland's vehicle stock, reducing greenhouse gas emissions from transport. The plan is for the financing of the subsidies to be included in the fourth supplementary budget for 2021.

The temporary Purchase Subsidy Act entered into force on 1 January 2018. An appropriation of EUR 24 million has been budgeted for passenger car purchase and conversion subsidies for 2018-2021. However, by 13 September 2021, approximately EUR 13 million of the appropriation remained unclaimed. A buyer or long-term lessee of a new electric car can receive EUR 2,000 in central government purchase subsidy. The conversion subsidy is EUR 1,000 for converting a petrol or diesel car to run on gas and EUR 200 for converting it to ethanol.

What next?

A referral debate will be held on the proposal now submitted by the Government to Parliament. The timetable for the debate will be listed on Parliament's website (upcoming plenary sessions). After the referral debate, the proposal will be sent to a Parliamentary Committee. The proposed act is due to enter into force on 1 December 2021 and is part of the implementation of the roadmap for fossil-free transport.

In addition, the Ministry of Transport and Communications is preparing a second government proposal to continue the current purchase and conversion subsidies. This legislative project is also preparing new subsidies for the purchase of electric and gas-powered vans and electric trucks. The deadline for comments on the proposal is 10 October 2021. The proposal is expected to be discussed in connection with amendments to the budget proposal for 2022 in late 2021.

Inquiries:

Päivi Antikainen, Director of Unit, Ministry of Transport and Communications, tel. +358 (0)50 3827101, paivi.antikainen(at)gov.fi

Pinja Oksanen, Senior Officer, Ministry of Transport and Communications, tel. +358 (0)295 342182, pinja.oksanen(at)gov.fi