Survey: Vast majority opposed to food VAT hike

The government is aiming to save billions, and has hinted that doing so could involve raising the value added tax on groceries.

Customers in a supermarket, with a woman in the foreground who is reaching into a freezer.
There was not as much opposition to the idea of raising taxes on foods considered to be unhealthy, like sweets and crisps. Image: Henrietta Hassinen / Yle
  • Yle News
  • STT

The vast majority of consumers in Finland said they would be opposed to increases in the value added tax (VAT) on food products, according to a survey conducted by PTT, the Pellervo Economic Research institute.

Prime Minister Petteri Orpo's (NCP) government is looking for ways to shore up billions of euros in state deficits, and has hinted that one way to balance public finances would be to raise the VAT on food, which currently stands at 14 percent.

However, PTT's survey suggests that a VAT hike on food would not be popular among consumers.

Nearly 70 percent of the poll's respondents said that VAT on food should not be raised to the VAT levied on other products — which is 24 percent.

More than half of the respondents said they think the VAT on food should actually be lowered, to help deal with rising food prices.

The survey also found that there was not as much opposition to the idea of raising taxes on foods considered to be unhealthy, like sweets and crisps, for example.

Last month, Finance Minister Riikka Purra (Finns) called for higher taxes on junk food. Similarly, the Institute for Health and Welfare (THL) also said it favours raising taxes on unhealthy foods.

Around ten colourful bags of various crisps in a supermarket trolley.
Image: Antti Kolppo / Yle

Nearly a third of PTT's survey respondents supported health-based food taxes, while 37 percent said they were against such measures.

Seventy percent of respondents said that price was a key factor in purchasing decisions made at the supermarket. Other less important factors in food shopping included flavour, quality and whether it was produced domestically.

Price was however the most important factor among respondents of all income levels, but cost played a more significant role for people in the lowest income brackets as well as the youngest consumers.

Two out of five respondents said they think food is too expensive for their households.

Climate and environmental issues appear to play a lesser role in what people put in their shopping baskets, based on the results of the survey.

The PTT-sponsored survey was part of a broader examination of issues concerning Finland's food chain. The poll was carried out last August, and queried around 1,000 consumers in Finland between the ages of 18-79.

The project was financed by the agricultural development fund Makera. Other financial supporters included the Finnish Food and Drink Industries’ Federation, the Central Union of Agricultural Producers and Forest Owners, as well as the Finnish Grocery Trade Association.

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