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Finland Forced To Scrap Tax On Candy And Ice Cream

Finland Forced To Scrap Tax On Candy And Ice Cream


The Finnish government has said that it will drop a controversial tax on sweets and ice creams after the European Commission ruled that it broke business competition rules. The commission, which is responsible for implementing the legislation enacted by the European Union, recently declared the tax unlawful as it affects imported goods unfairly compared to those produced in Finland.

The decision revolves around the fact that manufacturers of sweets or ice cream have to pay a tax on every kilogram they produce. However, this tax is also applied to imported items even though they already face strict import duties, something that the European Commission feels gives Finnish products an unfair advantage.

Even though the tax will no longer be applied to the food, it is unclear whether this will mean that customers will see a drop in price. Many Finnish residents feel that they will not see a benefit and that stores will simply keep prices as they are and pocket the difference. Merja Sandell, a finance ministry official, said: “Any possible drop in price will depend from the industry and shops’ pricing decisions.