New tax agreement between Iceland and the EU Skip to content

New tax agreement between Iceland and the EU

Iceland and the EU have reached a new agreement on the reduction of taxes on import and export of agricultural products to take effect on March 1.

According to mbl.is, the agreement includes that the EU is allowed to import tax-free 100 tons of beef, 200 tons of pork and 200 tons of poultry to Iceland.

Iceland, in turn, will be permitted to export 380 tons of skyr (a dairy product similar to yoghurt), 350 tons of butter, 120 tons of sausages and 1,350 tons of lamb tax-free to the EU.

Common taxes on many agricultural products will be reduced by up to 40 percent.

“This decision should lower food prices in Iceland,” said Iceland’s Foreign Minister Valgerdur Sverrisdóttir. According to a recent study, food prices are 62 percent higher in Iceland than average food prices within the EU.

“The new agreement also opens new opportunities for Icelandic agriculture. I believe it is of great importance for the agriculture to have access to the [European] market with skyr, butter and lamb,” the minister added.

Sverrisdóttir said the government is now working on an international agreement on tax reduction in the Doha Rounds “I believe we can continue to lower taxes and provide better market access.”

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!

Share article

Facebook
Twitter