Customs review welcomed
Bjarni Benediktsson, Minister for Finance and Economic Affairs, announced a comprehensive review of the Icelandic customs regime in Parliament on Monday. Photo: Kristinn Ingvarsson
The announcement on Monday by the Icelandic Minister for Finance and Economic Affairs, Bjarni Benediktsson, that a review of the country’s customs regime is on the cards has been welcomed by the Icelandic Chamber of Commerce. Customs duties in Iceland are just under three times higher than in neighbouring countries.
Over 12,000 different tariffs
Duties in Iceland are levied on the basis of a customs nomenclature with over 12,000 different tariffs, considerably higher than the worldwide average. In 2013, customs revenue brought ISK 7 billion (approx. € 47 million) into State coffers, i.e. just 0.9% of total revenue. The smallness of this contribution, when compared to the costs involved with the complicated regime, is one of the reasons behind Benediktsson’s announcement.
Hamper trade
The Icelandic Chamber of Commerce has welcomed the government’s plans for a comprehensive review of the customs regime. “Despite generating relatively little revenue, customs duites in Iceland greatly affect consumer behaviour. They hamper trade, take business out of the country, and distort competition on domestic markets – all this without even making a decent contribution to State finances,” reads an announcement from the Chamber.
