Verotustehokkuus
Verotustehokkuus is a Finnish term that translates to tax efficiency. It refers to the ability of a tax system to raise revenue with minimal distortion to economic activity and with reasonable administrative costs. A tax system is considered more efficient if it generates the desired amount of government revenue without causing significant negative impacts on incentives to work, save, invest, or consume.
High tax efficiency means that taxes are levied in a way that interferes least with market decisions.
Factors influencing tax efficiency include the design of tax laws, the fairness and transparency of the tax