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."

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Realistic depiction of Colombia's Health Minister defending alcohol and tobacco VAT hike at a meeting amid governors' protests over autonomy and revenues.
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Government defends alcohol and tobacco tax hike amid governors' opposition

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Colombia's Health Ministry backs the VAT increase on alcohol and tobacco from 5% to 19%, arguing it will protect public health by curbing consumption and related deaths. However, up to 20 governors oppose it, claiming the measure violates territorial autonomy and cuts revenues for health and education. The government has called a meeting for January 19, 2026, in Bogotá to clarify Decree 1474 of 2025.

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.

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.

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Germany's Federal Consumer Association has called for stronger nutrition education for children and youth amid rising food prices. vzbv head Ramona Pop advocates for more consumer education in schools and awareness of food waste. She also proposes a food price monitoring office modeled on France.

Fenalco's Economic Logbook reveals a decline in business optimism for 2026, with only 34% of respondents expecting improvements in their operations over the next six months. While November saw a sales boost from Black Days, uncertainty about consumption weighs on the commercial sector. The report highlights transformations in shopping malls and threats from platforms like Shein and Temu.

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Egyptian retail chains will launch dedicated Ahlan Ramadan sections across all branches next week, following a government agreement with food producers to freeze or lower commodity prices, Minister of Supply and Internal Trade Sherif Farouk said on Tuesday. The move aims to ensure market stability ahead of the holy month after an extensive meeting with trade federations.

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