Customers welcome food VAT cut but distrust stores

On April 1, VAT on foodstuffs drops from 12 to 6 percent, welcomed by customers in Falun. Many remain skeptical about sustained price reductions. Grocery stores are intensively relabeling thousands of price tags ahead of the change.

The government is reducing VAT on foodstuffs from 12 to 6 percent on April 1 to press down food prices. In September 2025, it established a food price commission to monitor prices, which presented its first report at the end of February and plans another in September.

In Falun, store manager Peter Jansson at Citygross is working to change 12,566 price labels. "We have a job ahead of us to change 12,566 labels," he says. The change coincides with Easter week, a high-shopping period. "It's Easter week now, so it was a poorly chosen time if I may say so myself," Jansson adds.

Customers interviewed by SVT Dalarna in Falun welcome the reduction but are suspicious of the stores. Alexandra Diaz, about to shop in a store that lowered prices in advance, says: "I'm going to go into the store now and check the prices."

संबंधित लेख

German gas station at midnight displaying reduced petrol and diesel prices after the government's 17-cent-per-litre tax cut takes effect.
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Fuel tax cut on petrol and diesel takes effect

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The German government's fuel discount took effect at midnight. Taxes on petrol and diesel drop by about 17 cents per litre for two months. It remains unclear how quickly pump prices will reflect the cut.

Sweden's food VAT falls from 12% to 6% on April 1. Stores like Ica Maxi in Bromma are busily updating price tags on thousands of items ahead of Easter shopping. Owner Gustav Johansson warns of potential customer rushes.

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Parliament has decided to reduce VAT on foodstuffs from 12 to 6 percent from April 1, 2026, to December 31, 2027, to bolster household economies. The change takes effect today. Shoppers in Örebro have mixed reactions to the cut.

Despite the fuel tax discount, prices in Germany have risen again after an initial drop. ADAC and the Federal Cartel Office criticize that the 17-cent-per-liter tax cut is not fully passed on to consumers. Oil companies and associations dispute this.

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The National Institute of Statistics and Censuses reported the consumer price index at 2.6% for April, the lowest reading in ten months.

The Swedish government has halted the requirement for electricity network companies to introduce effect tariffs by January 1, 2027. The decision implements EU legislation but affects companies in Dalarna that have already introduced or planned such tariffs. Mother Jennifer Ehrndal in Falun says it impacts household budgets.

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Prime Minister Sébastien Lecornu warned the Council of Ministers on Wednesday against measures on fuel VAT described as « as demagogic as they are useless ». This comes as oil prices rise over 5% due to the war in the Middle East, already affecting fishermen, farmers, and truckers. He also requested proposals to protect consumers from energy price volatility.

 

 

 

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