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Danish government party calls for VAT-free fruit and vegetables

Michael Barrett
Michael Barrett - michael.barrett@thelocal.com
Danish government party calls for VAT-free fruit and vegetables
Denmark's Moderate party wants to speed up the process towards lower tax on food. Photo by Peter Wendt on Unsplash
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The Moderate party, a partner in the coalition government, says it wants VAT to be removed from the price of vegetables despite the government saying last week there would be no VAT cuts on food before the election.

The Moderates, led by former prime minister Lars Løkke Rasmussen, say that work to ease the cost of living through relieving VAT on fruit and vegetables is taking too long.

“Our patience has run out so we are proposing removing [VAT] entirely,” food spokesperson Henrik Frandsen told news wire Ritzau.

The government is reported to be working in a model for differentiated VAT, moms in Danish, that would allow different rates on different items, a method used in several other European countries.

However, the government last week said technical complications meant this could not be introduced until after the next parliamentary elections, expected in late 2026.

Denmark has the highest tax rates on food in the EU.

Inside Denmark: No cuts on food tax could be a disappointment all round

That timescale is considered to be too long by the Moderates, who want a simpler solution – completely removing VAT from fruit and vegetables – which can be introduced more easily.

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“We have brought this to the table on a number of occasions without being about to get it approved, so we’re now proposing this so we can move forwards,” Frandsen said.

The government recently made a decision to remove VAT from the consumer price on books, and doing so was a relatively simple process, he pointed out.

Opposition parties on both sides of the aisle, including left-wing Red Green Alliance and right-wing Danish People’s Party, also support lower VAT on food.

Prime Minister Mette Frederiksen has also shown support, but said the process is likely to take time.

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