February 26th, 2007



Of course, I can't wait to go shopping on Thursday, because it'll be the 1st of March. Big news, because March 1st is when excise taxes are lifted from Icelandic and imported food products, and VAT (value-added tax) is reduced:
  • From 14% to 7% for food, books, music, newspapers and magazines, energy and hotel stays;
  • From 24.5% to 7% for foods in the higher tax bracket, all alcohol (!), and for restaurant food.
Some estimate the saving to an average family on food alone works out to about £1,000 or $1,700 a year. Nevertheless, the low-cost supermarket chains such as Bónus were quick to get in on the act: they've already lowered their prices to match the lower VAT rate, and their rivals Krónan quickly followed suit.

And at the top of my shopping list? A big-ass Easter egg.