The controversial 14 percent ‘sugar tax’ on sweet beverages, biscuits, chocolate and sweets due to have gone into effect in 1st January was instead quietly dropped shortly before the New Year.
Iceland’s biggest brewery, which also produces soft drinks, laid off some 30 workers because of the tax hike and the predicted negative impact on business. The company will, however, not be re-hiring the workers. Olgerdin Egill Skallagrimsson denies that the lay-offs were really made due to the company’s difficult debt position.
“The alcohol tariff has recently increased by ten percent and by 42 percent in one year and that hasn’t changed,” said CEO of Olgerdin Andri Thor Gudmundsson.
May I ask what was the purpose of the sugar tax? Was this an attempt to improve the health of Icelanders or just a money machine for the government?