veropohjan

Veropohjan is a Finnish linguistic form of the noun veropohja, meaning tax base. The word veropohjan is the genitive singular, used in phrases such as veropohjan laajentaminen (the broadening of the tax base) or veropohjan kaventaminen (the narrowing of the tax base). In this sense, veropohjan is not a separate policy or institution, but a grammatical form that appears in policy texts and discussions about taxation.

A tax base is the amount, value, or base upon which a tax is levied. Different taxes have their own bases: the personal income tax base includes earned and certain types of passive income after allowable deductions; value-added tax base is the value of taxable turnover; property and corporate taxes have bases defined by property values or corporate income concepts. Deductions, exemptions, and credits reduce the base, while the tax rate is applied to whatever remains.

Policy discussions frequently refer to broadening or narrowing the veropohja. Broadening the tax base (laajentaminen) aims to raise revenue without increasing tax rates by reducing exemptions and improving compliance. Critics warn that expanding the base can raise administrative complexity and affect equity, particularly for lower-income groups, while supporters argue it can improve fiscal sustainability. Narrowing the base (kaventaminen) lowers revenue and can ease burdens on certain taxpayers but may require higher rates or alternative measures to maintain revenue.

Overall, veropohja is a central concept across Finnish tax policy, used to describe the scope of taxation in various taxes and to frame reform proposals.