More than half of the companies in food industry are concerned about the government's tax policies in Finland.
A survey by Finnish Food and Drink Industries’ Federation reveals that 55 percent of companies see political risk as having increased due to the government’s plans to significantly raise the value-added tax (VAT) on sweets and chocolate at the beginning of June 2025.
The government is planning to increase the current 14 percent VAT on chocolate and sweets to 25.5 percent. According to companies, the proposed increases will reduce the industry’s willingness to invest and its capacity to create jobs.
According to Bate Ismail, economist at Finnish Food and Drink Industries’ Federation (ETL), uncertainty in the business environment is growing because the domestic market is the most important market for the Finnish food industry.
– Government’s tax decisions are putting a brake on investments in the food industry, even though the government program states that it should be accelerating growth and food exports. If the sector’s willingness to invest decreases, the impact will also be felt in the demand for domestic raw materials.
ETL is calling for fair taxation. Managing Director Mikko Käkelä warns against increasing the tax burden on the food industry. The planned VAT increases on chocolate and sweets are selective and targeted, even though taxation should be fair and predictable.
– Finnish food industry is the backbone of our national economy, and weakening investment in this sector poses a serious risk, Käkelä emphasizes.
Further information
