Today’s news / Lower VAT on fruits and veggies may reduce inequality
Lower VAT on fruit and vegetables will lead to more apples in the shopping basket, better public health, and less inequality. That's what the Heart Association believes. (Archive). Photo: Liselotte Sabroe/Ritzau Scanpix

Lower VAT on fruits and veggies may reduce inequality

A new report from the Danish Tax Ministry suggests that reducing VAT on fruits and vegetables to 15% from the standard 25% would cost the Treasury billions and the society millions. However, the Heart Foundation and United Grocers believe this doesn’t take into account the positive effect on public health by making healthier food choices more affordable. Natasha Selberg from the Heart Foundation emphasizes that such tax adjustments could mitigate social inequities linked to obesity and chronic diseases. She also advocates higher taxes on unhealthy foods like soda and candy. The United Grocers’ CEO, Jannick Nytoft, acknowledges IT system updates would be needed but argues the overall benefits outweigh these downsides. The group also cites the uncounted climate benefits of a more plant-based diet. Conversely, Danish Industry points to the potential added burden on businesses and overall economic losses, emphasizing the issue of additional costs on top of a two-billion-kroner tax bill.