Consumers will not benefit from tax reduction Skip to content

Consumers will not benefit from tax reduction

By Iceland Review

Director of the trading company Hagar announced yesterday that he does not believe consumers in Iceland will benefit from the new agreement on tax reduction of agricultural products between Iceland and the EU.

According to Fréttabladid, Hagar director Finnur Árnason said the tax reduction, which will take effect on March 1, will not result in lower food prices in Iceland, because they are already so high. Many other representatives of supermarkets in Iceland agree.

The agreement with the EU includes that 500 tons of beef, pork and poultry can be imported tax-free to Iceland, which, according to Árnason, is only two percent of locally produced meat products.

“We celebrate the fact that this amount [of imported meat products] is increasing, but this is hardly enough to have any substantial influence [on the price of meat products],” Árnason told Fréttabladid.

Sign up for our weekly newsletter

Get news from Iceland, photos, and in-depth stories delivered to your inbox every week!

* indicates required

Subscribe to Iceland Review

In-depth stories and high-quality photography showcasing life in Iceland!