No sweet nothings in Finland

Finland’s Institute for Health and Welfare (THL) is questioning a government proposal to raise the VAT value-added tax on sweets and chocolate.

The THL, a Finnish research and development institute which is attached to the Ministry of Social Affairs and Health, announced that it did not agree with the decision to raise the tax from 14 to 25.5 percent.

Talking to STT, the Finnish news agency, a senior THL investigator Heli Kuusipalo explained that the institute would prefer to see a sugar taxation system that was health-based rather than a direct VAT hike.

The higher the sugar content in any kind of item, the higher its price should be, the THL has suggested, as this would encourage manufacturers to reduce the amount of sugar in their products.

Kuusipalo also pointed out that recent studies have revealed that a growing percentage of Finns were in favour of increasing taxes on foods with a high sugar content.

Finland’s PM Petteri Orpo who heads the National Coalition Party announced raising VAT on confectionery as a sure way of raising more cash for the government, maintaining that current taxes are not covering outgoings.  As a result, Finland risks a reprimand from Brussels for contravening the EU’s Growth and Stability Pact, Orpo warned.