High indirect tax rates weaken the position of the grocery trade as well as consumers
Lowering VAT on food
According to the survey by the research institute Pellervon taloudellinen tutkimuslaitos PTT and the Government Institute for Economic Research, the lower income bracket households would gain most from a lower VAT rate as their purchasing power would be directly increased. This would make the Finnish food offer more versatile, improving both the competitiveness of the entire food chain and the rate of employment. The final aim is to lower the VAT on food to a level that would correspond to the average EU tax rate.