Lahti is opposed to “Fazer tax”-fears that the tax increase will stop the plan to build a confectionery factory

The picture shows a large sandy field with rocks and large heaps on the surface. — Fazer has designed a chocolate factory for a business site in the picture in Kujala, Lahti. The picture is from August 2024. The plot is an agreement with Fazer until the end of 2025.

The Lahti City Government will give its opinion on the proposal for the increase in the VAT increase tax on confectionery and chocolate on Monday, February 3.

The city of Lahti strongly opposes the increase in confectionery tax it called Fazer. Next Monday, the City Government will give its opinion on the government’s confectionery tax proposal.

The government proposes that the value tax on sweets and chocolate be increased from 14 % to 25.5 %.

The proposal to be made to the City Government shall, inter alia, considers that the proposal is at odds with EU legislation, as EU State aid regulation prohibits tax measures that distort competition and trade between Member States.

In addition, tax changes are not believed to lead to a healthier direction, but to cheaper products made abroad and to higher total sugar consumption.

The fear of Lahti is that Fazer will give up its chocolate factory investment in the Pippo area due to the increase. The project would have major employment effects in the Lahti region.

According to plans, the increase in confectionery tax would take effect from the beginning of June.