
Tax minister eyes lower VAT on healthy foods
Danish Tax Minister Jeppe Bruus is considering the implementation of a differentiated Value Added Tax (VAT) to make fruits and vegetables cheaper. He suggests this as an incentivizing measure to promote their purchase, although the Social Democrats have not yet decided to support variable VAT rates. Currently, Denmark applies a standard VAT rate to nearly all goods. Groups like Hjerteforeningen, The Danish Cancer Society, and the grocery chains Lidl and Coop 365discount have urged for this change, which has shown to increase sales when tested in stores. While Moderates support reducing VAT on fruits and vegetables by half, Venstre is against altering the rate. Generally, Denmark has a flat 25% VAT rate on goods and services, while many other European countries use variable rates. Applying differentiated VAT in Denmark could align taxation with health importance and CO2 footprint recommendations.