Sales tax on food lowered by 10 percent

Iceland’s political parties have reached a consensus to lower sales tax (VAT) on food from 14 percent to 4 percent, according to RÚV. For a four-person family that spends ISK 600,000 (USD 8,650) per year on food, this would mean a savings of ISK 60,000 (USD 865). This would also serve to lower the consumer price index and therefore the loans index, meaning that interest rate premiums on loans would also drop. This is reported in all the main media.