EHYT: Health taxes increase, but funding cuts threaten public health work

Juha Mikkonen

25.04.2025 - The government’s mid-term budget negotiations resulted in decisions to increase taxes on alcohol and nicotine products, a move in the right direction. However, at the same time, significant new cuts were made to funding for social and health organizations. These cuts now total 140 million euros, jeopardizing vital efforts by organizations promoting health and well-being. As the need for preventive measures grows in Finland, the resources allocated to them are shrinking, posing a risk to public health and social welfare.

Health tax increases are a positive step EHYT, the Finnish Association for Substance Abuse Prevention, commends the government for raising taxes on alcohol and nicotine products. Pricing and taxation, alongside restrictions on availability and marketing, have been proven effective in reducing substance use and associated harm.

“It is great to see that the government has listened to the substance abuse organizations' recommendations regarding health tax increases,” says Juha Mikkonen, Executive Director of EHYT.

A major concern, however, is that revenue from these taxes is not being directed toward harm prevention. Alcohol and tobacco taxes, together with gambling revenues, contribute over 3 billion euros annually to the state budget.

“The government should initiate an inquiry into how a portion of these health taxes could be earmarked directly for harm prevention, following international models,” Mikkonen urges.

Drug and alcohol policies must recognize that the harms caused by substance use disproportionately affect different population groups. Other government actions threaten to deepen inequalities and health disparities among groups, issues closely linked to substance abuse.

Funding cuts endanger preventive and support services The mid-term budget decisions included a further 10 million euro cut to grants for social and health organizations, amounting to a total reduction of up to 140 million euros over the entire government term, including earlier cuts.

“EHYT is deeply concerned about how these cuts threaten the continuity and effectiveness of substance abuse prevention efforts,” emphasizes Mikkonen.

These reductions also jeopardize essential support services provided by organizations, especially affecting vulnerable individuals who often remain outside official service systems. Due to the stigma associated with substance abuse, anonymous support provided by organizations is frequently the first place people dare to seek help.

Other policy decisions further increase the need for prevention While resources for preventive substance abuse work decrease, the demand for these services grows. The government is currently preparing significant reforms to the gambling system aimed at reducing gambling harms, yet the process has been heavily influenced by the gambling industry, allowing extensive marketing practices. Additionally, previous policy decisions on alcohol and nicotine product availability have already increased associated harms.

The Tobacco Act remains incomplete, complicating efforts to prevent nicotine product use among youth.

“To prevent nicotine addiction, the nicotine limit for nicotine pouches should be lowered to 4 milligrams, flavorings banned, and the age limit for purchasing tobacco and nicotine products raised to 20,” Mikkonen states.

Alcohol policy directions also remain unclear after the mid-term negotiations. The government should continue refraining from increasing alcohol availability—promoting the sale of stronger wines in grocery stores would increase consumption and population-level harm.

Furthermore, the government should abandon plans to permit alcohol home delivery. Instead, stronger support measures are needed for the over 89,000 children living in families where at least one parent has a serious substance abuse problem.

“What is needed now is consistent, long-term policy aimed at preventing substance-related harm—not measures that undermine the good work already accomplished,” Mikkonen concludes.

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Source: EHYT ry