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Finland's Christian Democrats Propose Food Fat Tax

by Ulrika Lomas, Tax-News.com, Brussels

21 September 2009

In a recent announcement, Finland's opposition group the Christian Democrats strongly urged the government to consider introducing a new tax on food fats, following the Danish example.

According to Bjarne Kallis, Chairman of the Christian Democrats' parliamentary group, the introduction of a tax levied on dairy products and vegetable oil, with the exception of milk, could generate as much as EUR100m annually.

The Christian Democrats also urged the government to introduce a tax on candy, and increase the existing soft drinks tax, at the start of 2010, instead of later in the year as currently proposed in the 2010 Budget.

Party Chairman Kallis referred to the government’s decision to lower the VAT rate on foodstuff by 5% next month, only to then increase it by 1% again in July next year, as folly.

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