US EditionDanish Grocers Worry over Sweden Cutting Their Food VAT in Half
8 Articles
8 Articles
The value-added tax on food was reduced in Sweden on Wednesday. Most Finns were familiar with the matter, but there were other reasons for the trip to Haparanda.
Sweden has halved the VAT on food, which could give Danish consumers lower prices. But transportation costs could eat into the savings.
VAT on food has been halved. The reduction is noticeable in stores when SvD goes out and shops. Now price developments will be monitored. "The judgment from the Swedish people will be very harsh if you raise prices unreasonably," says Finance Minister Elisabeth Svantesson (M) to SvD.
Finnish broadcaster Yle writes that starting Wednesday, Swedish stores will offer cheaper food than before, as the VAT on food will be halved.
The reduction in food VAT in Sweden will result in more cross-border trade, believes the organization for Danish merchants.
On April 1, the halved food VAT will come into effect, just in time for the big Easter grocery shopping.
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