Candy bags by Fazer in Citymarket grocery, Jyväskylä. Photo: Tiia Monto
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A planned increase in the value-added tax (VAT) on sweets and chocolate has raised concerns in Päijät-Häme, where Fazer had previously announced plans for a major factory investment in Lahti. The proposed tax hike to 25.5% could impact not only the region but also the national economy, as the factory would generate significant employment and encourage further investment in Finland.
Fazer’s €750 million investment would create 7,000 person-years of employment during construction and between 900 and 1,800 permanent jobs once operational.
The factory would also support local entrepreneurship and service industries, including maintenance, logistics, and supply chains. The overall economic impact of the investment is expected to exceed the projected €85 million in additional tax revenue from the VAT increase.
Rising inflation has already posed challenges, and local business leaders argue that the government should avoid further obstacles to economic growth. The proposed tax increase would affect the retail and service sectors, and its impact on Fazer’s investment plans is particularly concerning. If the project does not proceed, Finland risks losing significant job creation and long-term economic benefits.
The government has set a goal of doubling food exports, yet this proposal undermines the competitiveness of the food industry. Päijät-Häme, one of Finland’s largest food production hubs, would be particularly affected. Food and beverage production is a key focus of the region’s economic strategy, with local universities playing a central role in industry development.
The region recently celebrated local food industry success when Kinnarin Tila won the Suomalainen menestysresepti competition, with Viipurilainen Kotileipomo securing third place. While these achievements highlight innovation in the sector, business leaders are urging the government to adopt a more effective strategy for economic growth rather than relying on tax increases that could discourage investment.
HT
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Source: www.helsinkitimes.fi
