- Sweden plans to temporarily reduce VAT on most food and bottled water from 12% to 6% between April 1, 2026, and December 31, 2027.
- The measure aims to help households with the cost of living, boost purchasing power, and stimulate the economy amid high food prices and economic downturn.
- Alcoholic beverages and tap water are excluded from the VAT reduction.
- The proposal is part of the 2026 budget and was introduced ahead of the 2026 legislative elections.
- While supported by some, the plan faces criticism, especially regarding its effectiveness for low-income households.
Source: meridianglobalservices.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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