Parliament Caves Under Pressure From Snacks Industry

A parliamentary committee has given in to pressure from the domestic snacks industry and dropped a roll-back on tolls for imported snacks.

Vísir reports that the majority of the Economic Affairs and Trade Committee had originally recommended to abolish the 59% tax on imported snacks to Iceland. However, after receiving considerable pressure from domestic snacks manufacturers, they reversed their decision. The tolls will stay in place.

The move was meant to ensure Icelandic snacks producers will continue to have a competitive edge of imported goods. However, Independence Party MP Sigríður Á. Andersen does not believe Icelandic snacks producers need any form of protectionism to remain competitive.

“Those who I’ve spoken to [within my party] view this very positively,” she said. “I think everyone agrees that we need to coordinate this customs toll jungle, one can certainly call it, that rests on these snacks products. People agree with simplifying it, and to my mind all customs tolls on these products should drop to zero as if they are already all the same products.”

If passed, the new custom tolls regulations will go into effect next year.