The government during the spring’s spending limit negotiations planned for an increase in excise duties on sweets, ice cream and soft drinks.
The tax increment was expected to add 50 million euros to the state coffers.
However, according to the finance ministry, the move would have had a negative impact on the sector and therefore had to be re-evaluated.
Finnish Food and Drink Industries’ Federation made a complaint to the European Commission last year. According to the federation, the increased taxation would distort competition and favour manufacturing of products such as biscuits and pudding.
The taxation on sweets was hiked this year and the previous year.
