- Sweden plans to temporarily reduce food VAT to 6% from April 2026 to December 2027.
- The budget aims to support households and the economy amid stalled growth due to Trump tariffs.
- The government will submit the budget bill to parliament on September 22.
- The budget includes 80 billion Swedish crowns of unfinanced measures, the most expansive since the pandemic.
- The VAT cut is expected to save the average family 6,500 Swedish crowns annually.
- A “food commission” will monitor price developments to ensure savings reach consumers.
- Sweden’s retail food market is dominated by a few supermarket chains, raising competition concerns.
- The budget will also increase housing allowances for low-income families and may include tax cuts.
- Public spending is expected to rise due to increased military spending and a shift from fossil fuels.
- Government debt is expected to rise, but Sweden’s public finances remain strong in the EU.
Source: reuters.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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