Malmö restaurateur criticizes food VAT cut favoring big chains

A Malmö-based restaurateur has criticized the upcoming food VAT cut from 12% to 6%, effective April 1. The change applies to groceries and takeout, but not restaurant meals. Hannes Kongstad of Kiosko import views it as benefiting large chains.

The 2026 state budget decided to reduce VAT on foodstuffs from 12% to 6% starting April 1. The reform covers food bought in stores, takeout, and takeaway coffee, but excludes meals eaten at restaurants.

Hannes Kongstad, part-owner of Kiosko import in Malmö, has voiced strong criticism. “It feels more like a service to the big food giants,” he told Sydsvenskan. He argues the cut benefits supermarkets at the expense of smaller players like restaurants.

The VAT reduction aims to put more money in consumers' pockets and boost the economy, per the budget decision. The criticism highlights divisions in how the reform impacts various segments of the food sector.

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Sweden Democrats politicians promoting cold beer at Systembolaget with promises of lower VAT and tax cuts
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Sweden Democrats promise cold beer at Systembolaget and low food VAT

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Sweden Democrats present proposals for an election platform with promises of cold beer at Systembolaget, lower food VAT and abolished electricity tax.

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.

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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.

A weekly menu for a family of four varies in cost across stores in Dalarna. SVT Nyheter Dalarna's measurement shows that store choice can save over 4000 kronor annually.

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The Kenya Revenue Authority (KRA) plans major changes to the Value Added Tax Act by scrapping the KSh5 million annual turnover threshold for VAT registration. This would require all businesses, including micro-enterprises, to charge 16% VAT on taxable goods and services and remit it monthly to KRA. The authority claims it will widen the tax base and boost collections from KSh653 billion to over KSh1 trillion.

Sofia Jarl (C), regional councillor in Dalarna, directs criticism at the government's plan for temporarily halved public transport fares.

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The European Commission has warned Spain that reducing VAT on fuels from 21% to 10% violates the EU VAT directive. The Spanish government defends the measure as temporary to ease energy price hikes due to the war in the Middle East. Brussels recommends cutting special taxes on hydrocarbons instead.

 

 

 

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