Helsinki: The Finnish parliament has approved reforms to the country's inheritance and gift tax legislation, significantly raising the minimum thresholds for both taxes.

According to Anadolu Agency, the revised legislation will increase the minimum inheritance tax threshold from £20,000 ($23,333) to £30,000 ($35,000), and the gift tax threshold from £5,000 ($5,832) to £7,500 ($8,750). This change means that inheritances and gifts below these new thresholds will be exempt from taxation once the legislation takes effect at the start of next year.

This legislative reform comes as Finland seeks to ease an inheritance tax system that has remained unchanged since 2009. The government, led by Prime Minister Petteri Orpo's National Coalition Party, initially aimed to abolish the tax entirely. However, it was concluded that a full repeal is not feasible at this time.