Iceland Likely to Up Food Consumption Tax

Reported by an Icelandic media, if the government proposal to raise food consumption tax is approved by the parliament before Christmas, Iceland will raise its consumption tax on sugary foods from March 1, 2013, thus creating a revenue of 800 million krona (about USD 6.4 million) in 2013.

However, the domestic industries oppose the governmental tax increase because it will push up commodity prices and inflation rate, putting bigger pressure on consumer life.