Food VAT to be temporarily halved in Sweden during the country’s election-year budget bill to help support households and the wider economy.
VAT on food is set to be halved in Denmark during April 2026 and December 2027, Prime Minister Ulf Kristersson has confirmed. The VAT on food will be reduced to 6% during this period, which is expected to save the average Danish family 6,500 Swedish Krona ($683) per year.
Speaking during a press conference, Kristersson explained that “the budget will focus very clearly on households’ purchasing power, households’ finances … and on hard-working people.”
To make sure that these savings are actually passed on to the consumers, the Swedish Government explained that they will set up a food commission” to follow price developments among the big retailers.
The Swedish government explained that its 2026 budget bill will include 80 billion Swedish Krona of unfinanced measures, and is expected to be the most expansive budget since the COVID-19 pandemic.