Finland’s ice cream truck industry was already facing challenges — weather and sparse population — and then along came the tax hike that has effectively killed the industry.
In the two years the tax has been in effect, per capita consumption of ice cream has fallen below about three gallons, a decrease of 20% from its pretax level, Sakari Kotka, general manager for Nestlé’s Finland operations said. Finland traditionally ranks in the top 10 of ice-cream eaters per capita.
The tax doomed a business that was already melting due to tough conditions. Unlike ice-cream trucks in many parts of the world, Finland’s delivery agents sold most of the sweets in boxes or bulk rather than individually.
Raise the tax on something, and you will get less of it.