Finland lifted its confectionery tax a decade ago. Now government has decided to reinstate the tax on sweets and soft drinks next year. Prime Minister Matti Vanhanen says this will bring an estimated 100 million euros into state coffers.
Pekka Puska, the director of the National Institute for Health and Welfare, says he welcomes the government’s decision. He compares the tax on sweets to the ones on alcohol and tobacco.
According to researcher Kirsi Pietiläinen, studies indicate that prices do affect consumption. She adds that even knowledgeable people choose easy and cheap foods over expensive, healthy ones. Pietiläinen says nowadays Finns are quite savvy when it comes to fat consumption. However weight gain in young women and children is often due to too much sugar.
Ami Ward, the managing director of Panda, says that the effects on candy consumption will depend on the tax rate. However Ward is not too concerned: cravings for sweets are especially strong in a slumping economy. This was seen during the recession of the 1990s as well.
Ward adds that consumers will try to save on large purchases during the recession; they will be less likely to save a few coins here and there for sweets.
