- The Finnish government has decided to abandon plans to raise the VAT on sweets and chocolate from 14% to 25.5%, a proposal that faced significant public criticism during consultations, as announced by Finance Minister Riikka Purra.
- The cancellation of the tax hike, which was partly referred to as the “Fazer tax” due to its impact on Finland’s leading confectionery manufacturer, will allow companies like Fazer and Orkla Finland to proceed with planned investments, including a new chocolate factory in Lahti.
- To compensate for the projected loss of €86 million in revenue from the canceled VAT increase, the government is exploring alternative measures, such as eliminating tax subsidies for data centers and raising alcohol taxes on certain products.
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