Consumers serve as price cut watch dogs Skip to content

Consumers serve as price cut watch dogs

The Consumers’ Association of Iceland is constantly receiving complaints from dissatisfied consumers about restaurants and stores that have not lowered their prices despite the VAT reduction last week.

Director of the Association Jóhannes Gunnarsson told Morgunbladid he had received nearly 200 complaints since March 1. He said recent complaints mostly evolve around restaurants and canteens, which according to Gunnarsson, are the “weak spots.”

“These are restaurants and canteens that seem to intend to use part of the VAT reduction to benefit themselves,” Gunnarsson said.

Gunnarsson added many grocery stores did not lower their price immediately after the VAT reduction, partly because of difficulties with their computer system, but now most stores have adopted the price change, he said.

According to Morgunbladid, the Reykjavík City Educational Council has taken measures to make sure also elementary schools lower the price of food in their canteens.

On March 1 the VAT (value added tax) of food products and other goods was lowered to seven percent and excise taxes on food products were canceled.

The goal is for food prices in Iceland to be comparable to food prices in the other Nordic countries.

Click here to read more about the VAT reduction.

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