One for you, nineteen for me...

Lowering taxes is not an answer. Not in Finland at least. When the barber shops were about to get reduced tax, they promised that it will affect the prices. Meaning lowering them. When it finally happened, most of the barbers were complaining how much pressure they had had to lift prices up and now they could hardly maintain the price level. So the customers didn't get anything.

Now it's planned that some groceries will get lower tax (ALV/MOMS) in the Fall. Authorities have started to watch shops and markets already, because they are afraid of foul play. Meaning, some may lift prices now and then in the Fall lower them back. Thus it would look like they lowered the prices due to the tax reduction. And in fact they gather the whole subtraction for themselves. That's how it went when we changed our currency from mark to euro. Perhaps we have learnt something from it..?

That's how it could also happen with tax lowering in the gasoline prices. I don't want the greedy gas companies to do the same thing. It's alright if the state takes 75% of the gas price. Somehow some of that will eventually benefit us all. Says bona fide Smek.

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