Government seeks to lower VAT on certain basic goods 07.07.2026

The Swedish government has decided to appoint a commission of inquiry to investigate the possibility of differentiated VAT on food. The purpose of this initiative is to lower the costs of particularly essential basic goods to ease the financial burden on struggling households and hard-working families. Finance Minister Elisabeth Svantesson (M) has, in a comment to SvD, emphasized that the goal is to make food cheaper by potentially lowering the VAT on common groceries purchased regularly. Despite the government's intentions, the proposal is facing criticism from economists and the industry. Economist Marcus Widén has described the proposal as a blunt and ineffective way to handle economic challenges. The inquiry will now analyze how different VAT rates can be implemented to effectively keep food prices down for consumers.
















