Union Protests Sugar Tax Skip to content

Union Protests Sugar Tax

The board of the Union of Dairy and Meat Producers have voiced their strong opposition to the proposed ISK 800 million (USD 6.4 million, EUR 4.9 million) increase in excise tax on food products that was recently announced in the government’s budget bill.

groceries_esaPhoto by Eygló Svala Arnarsdóttir.

In a statement, the board said that the increase in excise tax, which is to be directed at sugary foods, is justified to combat obesity, mbl.is reports.

However, raising taxes on food by ISK 800 million per year, they argue, has a negative impact on consumers with higher commodity prices and rising inflation, which leads to higher down payments on mortgages. The union urges the government to withdraw the proposal.

Click here to read a similar story from 2009.

ZR

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