Finland imposes tax hike on confectionery

24 September 2010 – The Finnish government has announced plans to introduce a tax on confectionery, ice cream and soft drinks. Originally intended to be set at almost €1 per kilogram of goodies, the tax has now been dropped to €0.75 per kilo. When a tax on sweets was last enforced during the markka era in 1999, the level was set at the equivalent of €0.58 per kilogram. Biscuits and buns, special diet products, infant formulas and nutrient drinks will not be included.

The Finnish association of biscuits and confectionery industries has been lobbying against the levy since its reintroduction was first proposed a year ago, and during the stakeholder consultation process.

David Nuutinen, managing director of Leaf Suomi Oy and chairman of the association, says, “We were successful in having the tax reduced from 95 euro cents to the kg down to the current level but the excise model, based on customs tariff classifications, lacks logic. Many product groups containing sugar remain outside the scope of the tax model, while spring and mineral waters and functional foods containing Xylitol are going to be levied.”

The taxes are estimated to add up to a €135 million each year and will be implemented at the beginning of next year.

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