Finland Drops Sugar Tax

October 1, 2015 Taxation in Finland

HELSINKI – An upcoming tax cut in Finland may see the prices of ice cream and candy fall significantly.

The government of Finland has announced that starting from 2017 it will drop the currently imposed tax on sugar, as the levy has been deemed to unfairly advantage local producers.

The tax was first introduced in 2011 and is charged at a rate of EUR 0.95 per kilogram, however, the Eurpean Commission deemed the measure to be unfair to overseas sugar producers, as the tax was levied on top of already existing import duties.

It is estimated that in 2015 the sugar tax will bring in EUR 109 million.

The Taxpayers Association of Finland has already come out to claim that the removal of the tax could see the price of a liter of ice cream in the country drop by EUR 0.50, however, it is not yet known if the savings will be passed to consumers or whether the reduction of the tax will be pocketed by manufacturers of sweetened products.

The removal of the sugar tax will not be accompanied with a removal of the long-standing tax on soft drinks, which has been in force since 1940.

Photo By: Kanko*