Faroe Islands temporarily removes VAT on petrol and diesel

The Faroese government has approved the removal of value-added tax (VAT) on petrol and diesel until 31 July, with the change expected to take effect early Saturday, national broadcaster Kringvarp Føroya reports.

The decision was passed during the third reading of the bill in the Faroese parliament (Løgtingið) on Friday. The tax reduction will be implemented immediately, allowing drivers to refuel without VAT from Saturday morning.

Suni Justinussen, manager at the fuel company Magn, told KVF the change will be noticeable in prices at the pump. Finance minister Aksel V. Johannesen stated that the government will assess the situation before the measure expires at the end of July.