Food VAT cut to 6 percent from today

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.

Parliament recently decided on a temporary reduction of VAT on foodstuffs to support household economies. The rate is halved from 12 percent to 6 percent for 21 months, from April 1, 2026, to December 31, 2027.

Outside Willys in Baronbackarna, Örebro, on Wednesday morning, passersby reacted differently to the news. Mylen Gustafsson, shopping with son Oliver, was delighted: "Underbart. Äntligen." She noted it felt a bit cheaper, but not as much as hoped.

Undersköterska Ahmad Rahimi welcomed the change: "I didn't know, but it's good. I work as an assistant nurse and it's not well paid." Bui Duy Quang was pleased and noticed lower egg prices: "Halva momsen! It's great."

Kerstin Dahlström was skeptical: "It might show a bit now at first, but long-term I don't think it will make much difference." Ronny Gadd saw no major change but was generally positive: "It's six percent after all and that makes a few kronor per item." Stores highlight the cut with odd prices like 16.87 kr.

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Swedish economists and officials have criticized US President Donald Trump's escalation of global tariffs to 15% following the Supreme Court's invalidation of his prior levies, citing policy unseriousness and economic uncertainty for exporters. The government plans to assist companies via a hotline and push new trade deals.

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.

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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.

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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Commerce Minister Serge Papin announced on April 4 that meal vouchers could be used on Sundays, while confirming their use in supermarkets. A bill to this effect will be tabled by summer, drawing ire from traditional restaurant representatives. They decry the shift of vouchers into general food coupons.

The temporary reduction in the mineral oil tax has been in effect since May 1. Consumer prices for gasoline and diesel have dropped noticeably. Federal Finance Minister Lars Klingbeil expects the oil industry to pass on the relief in full and without delay.

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Indonesia's government has capped domestic flight ticket price increases at 9 to 13 percent amid rising jet fuel costs. The measure provides government-borne VAT relief for economy class tickets. It applies for 60 days to protect consumer purchasing power.

 

 

 

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