Alcohol Tariff in Iceland Up by 42 Percent Skip to content

Alcohol Tariff in Iceland Up by 42 Percent

By Iceland Review

A bill on changes to indirect taxes, that is, tariffs on products and services, was submitted at the Althingi parliament yesterday.

Photo by Páll Stefánsson.

A ten percent increase on alcohol and tobacco tariffs is being suggested, which is supposed to deliver ISK 1 billion (USD 8.1 million, EUR 5.4 million) of additional revenue to the state treasury. If realized, tariffs on alcohol will have increased by 42 percent in one year, Morgunbladid reports.

The bill also includes a ten percent increase of the automobile tax as of January 1, 2010, in addition to higher fuel prices. A bill on carbon emission tariffs is also said to be in the pipelines.

Furthermore, it is being suggested that several registration and permit tariffs increase, by 50 percent on average, and a three-step value added tax system will be adopted.

As of March 1, 2010, sugared products, non-alcoholic beverages and food and beverages sold by cafés and restaurants will have a 14 percent VAT instead of the current seven percent.

Click here to read more about the new tax system.

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