Tariff On Imported Pizza Cheese Upheld By Reykjavík District Court

A conclusion was reached by Reykjavík District Court  on February 17 regarding the application of a 30% tariff on imported pizza cheese. According to the verdict, the gooey topping is subject to the extra tax, RÚV reports.

With the ruling, the district court rejected the demands made by import company Danól to rescind the customs classification made by the Icelandic Revenue and Customs for pizza cheese mixed with vegetable oil.

Danól’s lawyer claims the case will be appealed to the Landsréttur Appeal Court.

In January, the European Union placed Iceland on a list of trade barriers due to a 30% tariff on imported pizza cheese, implemented in 2020.

According to Icelandic Federation of Trade chairperson Ólafur Stephensen, authorities have given in to pressure by MS Iceland Dairies (Mjólkursamsalan) and the Farmers’ Association of Iceland to tax imported pizza cheese.

Minister of Finance Daði Már Kristófersson has published legislative plans changing the classification of the cheese so that the product will be defined as tax-free.

MS Economist Erna Bjarnadóttir claimed that the tariffs imposed on the topping revolve around the interests of Icelandic dairy farmers and cheese producers. She expects the Farmers’ Association to communicate their hesitations to the finance minister’s plans.