The Finnish government is examining a number of proposals to cut the VAT on standard food products.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Finland is also considering the introduction of a lower VAT category to stimulating purchases of low-fat, healthier foods. The first reduction in VAT on food will take place next year.
Food and Agriculture Minister Sirkka-Liisa Antilla has established a committee that will examine and recommend a process to lower the VAT on food in stages from the present 17% to 8% by 2009.
“We hope that the lower VAT rates on standard foods will reduce food prices across the board,” said Antilla. “Moreover, we want to create a new VAT category for low fat healthy foods, including vegetables. This has the advantage of providing incentives to consumers to choose healthy food alternatives.”
