Cheaper everyday goods anticipated for residents of Faroe Islands as VAT exemption discussions continue

It will become cheaper for residents of the Faroe Islands to purchase everyday goods, as stated by the Social Democratic Party in February 2022. The party then worked on proposals to amend the VAT law, reiterating this commitment prior to the December elections of the same year.

However, since then, there has been little information regarding this initiative, and a VAT exemption for everyday goods has not been mentioned in the financial budget proposal for the upcoming year.

“Discussions regarding calculations are still ongoing, and a proposal will be presented to Parliament. There was no need to include the VAT exemption in the budget this time,” stated Aksel V. Johannesen, the Prime Minister.

The exemption is intended for the most common everyday goods, as highlighted by the Prime Minister.