Iceland Sugar Tax to Generate Millions Skip to content

Iceland Sugar Tax to Generate Millions

The proposed increase on taxes on sugary products is expected to generate ISK 960 million (USD 7.7 million, EUR 5.9 million) per year as of 2014.

cookies03Photo by Eygló Svala Arnarsdóttir.

If the bill is passed before the Christmas break, the new tax will come into force on March 1, 2013, and is expected to generate ISK 800 million (USD 6.4 million, EUR 4.9 million) next year, i.e., during the ten-month period, Morgunblaðið reports.

Director of the Federation of Trade and Services Andrés Magnússon criticizes the tax and says it will not achieve the intended public health targets.

Marteinn Magnússon, marketing manager at wholesalers Eggert Kristjánson hf., agrees. “This tax has an impact on the whole society and will increase the price of food products for families.”

As reported earlier, the board of the Union of Dairy and Meat Producers has voiced strong opposition to the proposed tax, arguing that it will have a negative impact on consumers with higher commodity prices and rising inflation, which leads to higher down payments on mortgages.

Click here to read about proposed higher tariffs on alcohol and tobacco.


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