Vanhanen’s response, made in a YLE Radio interview in Sunday, came after the Deputy Chair of the Centre Party, Antti Rantakangas, said the government’s budget policy did little to help the low paid.
The Prime Minister defended the proposals saying they were also aimed at stimulating exports. He added that an increase in income tax would have made the price of labour too high. Raising value-added tax, he claimed, would not affect exports.
Vanhanen also defended the reduction in value-added tax on food saying it was a just decision for people in all income brackets.
