The Swedish government plans to temporarily halve the food VAT from 12% to 6% to boost household purchasing power. This change, effective from April 2026 to December 2027, is expected to cost 37 billion SEK. The government is considering tasking the Swedish Competition Authority with ensuring that grocery stores pass on the savings to consumers. Ulf Mazur from Matpriskollen supports the move, predicting significant price reductions and increased sales volumes.
Sweden to Halve Food VAT: How It Will Impact Your Grocery Bill
Sweden to Halve Food VAT: How It Will Impact Your Grocery Bill
The government aims to strengthen household purchasing power by temporarily halving the food VAT. Ulf Mazur from Matpriskollen explains how this could affect food prices.
The government will soon present a proposal for a temporary reduction in food VAT, reports SVT News. The reduction—from twelve to six percent—will apply from April 1, 2026, to December 31, 2027. The decision for 2028 and beyond will be left to the next government.
According to SVT News, the total cost is expected to reach 37 billion SEK.
Since it is crucial for the government that grocery stores actually lower prices, they are considering assigning the Swedish Competition Authority to monitor this.
Ulf Mazur from Matpriskollen, a service for comparing food prices, believes this is a good idea.
– Yes, I think so. Not only should prices be lowered, but it is also important to continue monitoring them. Thousands of prices change every month, so it is essential to track this and see that it has a long-term effect.
"Never Checked Prices as Much as Now"
He believes that grocery stores would indeed lower prices.
– I believe they absolutely would follow through, as the media, Matpriskollen, and others are closely watching. Consumers are very attentive—people have never checked prices as much as they do now. The last thing chains or retailers want is for customers to feel deceived. They certainly don't want that, says Ulf Mazur, adding:
– Therefore, I absolutely believe they would initially lower prices, but it is important to monitor this over time to prevent margin enhancement. The trade will see increased sales volume, which is positive for chains and stores.
Today, an adult Swede spends about 3,000 SEK per month on food. How much cheaper will food become with a halved food VAT? Ulf Mazur estimates it would be about 1,500 to 2,000 SEK per person per year.
The issue of reduced food VAT has been advocated by the Sweden Democrats. Over the weekend, Expressen reported that the party has reportedly secured the reform in budget negotiations. The Social Democrats also want the food VAT halved, reports DN.
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