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Denmark Plans Food VAT Cut to Ease Living Costs, Faces Expert Concerns

  • Denmark plans to cut VAT on essential food starting in 2028, costing DKK 6 billion per year.
  • The move aims to ease food-price and cost-of-living pressures and boost household purchasing power.
  • Two options are being considered: lowering the food VAT rate from 25% to 20%, or removing VAT entirely on fruits and vegetables.
  • Economic advisers warn the measure could be costly, harder to administer, and add bureaucracy.
  • They also say VAT cuts may not fully reach consumers and that targeted support for low-income families may work better.

Source: tv2fyn.dk

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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