Finland Cancels Candy Tax Hike After Backlash

• Finland cancels plans to raise VAT on candy and chocolate.
• The government proposed raising VAT on sweets and chocolate from 14 percent to 25.5 percent nearly a year ago.
• The decision was partly based on criticism received during the legislation’s consultation round.
• There was uncertainty over whether the proposed law would comply with EU regulations.
• The government will compensate for the estimated 86 million euros in lost revenue.
• The government will eliminate tax subsidies for electricity use by data centers and the mining industry.
• Alcohol taxes on wine will be raised.
• The sweets VAT hike plan was referred to as the ‘Fazer tax’ because it affected Finland’s leading chocolate and confectionery manufacturer the most.
• Fazer announced plans to suspend a decision on plans to build a 750-million-euro factory in Lahti.
• Fazer is pleased with the government’s decision and will move forward with the investment process for the new chocolate factory.

Source: yle.fi

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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