Ministry officials hope the tax would discourage people from eating so many sweets. However, ETL argues that the purpose is to generate revenue for the state.
”This has nothing to do with public health. This tax is meant to compensate for the drop in VAT at restaurants,” says Heikki Juutinen, the director of ETL.
He asks why else would the law apply to xylitol gum, which has been shown to have health benefits, but not potato chips or sweet rolls.
Juutinen adds that the tax hike will likely drive more people to Estonia for cheaper goods.
The tax would be most noticeable on kilo bags of candy and on ice cream. For instance, the cost of a container of ice cream could go up by 60 percent. The tax on soft drinks and bottled water will also rise.
Lawmakers are expected to make a decision on the tax this autumn. If passed, the legislation could go into effect early next year.
Finland had a similar tax in force between 1926 and 1999.
