Tax-free sales in Finland had a tough year in 2014.
In December 2014, tax-free sales dropped in eastern Finnish cities near the Finnish-Russian border by more than 70 percent. Imatra, Kotka, Joensuu, Kouvola, Kajaani, Lahti, and Kuopio were worst hit.
In Kajaani, Seppo Kemppainen of Laatukone Oy which sells quality motorised equipment ranging from chainsaws to snowmobiles says he’s seen a dramatic drop in sales.
“Our Christmas 2014 sales are probably not far from the average decrease of 75 percent. It’s been very quiet,” says Kemppainen.
“The largest reason is the crash of the rouble. Traditionally we have sold outboard motors and other small machinery, valuable stuff to Russian customers. If prices have tripled for them, it shows. At least the decision to buy is put off until the exchange rate is more reasonable,” he says.
But Kemppainen says the decline already started in the spring of 2014, when the Ukraine crisis and sanctions against Russia started to adversely affect the value of the rouble.
According to statistics from tourism shopping tax-free company Global Blue, there was a 31 percent decrease in tax-free sales for Finland in December 2014 compared with December 2013. The largest drop was in the city of Joensuu where year-on-year tax-free sales dropped by 49 percent -- that's almost by half.
In Finland in 2014, the largest number of tax-free purchases was made in Helsinki, at 35.6 of the total. The second largest amount of tax-free purchases were made in Lappeenranta, at 25 percent.
Year-on-year Helsinki saw a 20 percent drop in tax-free purchases in 2014 over 2013.
