Wed, 30 Sep, 2015 12:10:36 AM FTimes – STT Report, Sep 30 File Photo – Lehtikuva. The price of ice-cream and confectionery will be cheaper from 2017, if the proposal for removal of the current tax is passed on to the prices.
Since the taxation is kilogram based, its share is greater in cheaper products.
For example, the tax removal share accounts to about a quarter of the price in a carton of ice cream which costs a couple of euros.
Tax income from ice cream and confectionery is estimated at euro 109 million. The share of confectionery is about euro 80 million while euro 30 million accounts for ice cream share of taxation.
Two state complaints were made to the European Commission. The Commission has so far unofficially indicated that the current form of taxation is incompatible with state aid rules.
The Ministerial Committee on Economic Policy as a result decided to eliminate the taxation.
Senior government advisor at the Ministry of Finance Merja Sandell said the unofficial position of the European Commission arise from the view that the current tax constitutes state aid, for example, milk and biscuits.
According to Sandell, if the matter is resolved in the Court of Justice of the European Union the result would see retrospective taxation which is not wanted. Another option would be tax extension.
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