DR reports that the government’s plan to cut VAT on food, costed at 17.4 billion kroner a year, could become the opposition’s main lever in this autumn’s tax reform negotiations.
The analysis appeared Thursday in DR’s Magtens Morgenbrief. Former Prime Minister’s Office advisers Thomas Juul-Dam and Jacob Bruun assess the plan in the podcast Magten. DR notes the opposition had a weak week, after several Dansk Folkeparti members missed a vote tied to their own urgent debate on migration.
The government wants to halve VAT on food and remove it entirely on fruit and vegetables. According to DR, it is the most expensive proposal in the government platform, at 17.4 billion kroner annually. Both advisers said the sum is unusually large for a single political proposal, and neither expects it to be implemented in full.
Tidende, summarizing reporting by Jyllands-Posten, cites calculations from Skatte- og Vækstministeriet. Zero VAT on fruit and vegetables would cost 2.6 billion kroner a year, while halving VAT on other food would cost 14.7 billion. The same coverage notes that implementation is not expected before 2028, partly because the tax administration needs a new IT system.
Berlingske reported that tax and growth minister Jakob Engel-Schmidt (M) confirmed the 17.4 billion kroner estimate in a written reply to the Folketing. The paper’s editorial line notes the figure equals a little over 1 percent of Denmark’s total tax revenue of around 1,400 billion kroner.
The VAT change is part of a wider tax reform containing both cuts and increases, DR writes. The government does not hold a majority and must find 90 mandates for its proposals. That, according to DR, is where the opposition can set a price for its votes.
Juul-Dam said that in Venstre’s position he would back lower taxes, but demand deeper cuts than the government proposes. He described the opposition as being treated as voting cattle. Bruun said the reform will likely be split into smaller pieces to secure separate majorities.
Enhedslisten’s political spokesperson Pelle Dragsted stated this week that the VAT plan must be carried out, and the government’s survival depends on the party. As reported by O Konomi, citing TV2, Dragsted says the government and its supporting parties have agreed to halved food VAT and zero VAT on fruit and vegetables.
Save up to 2,800 DKK on Your Electricity Bill
FindElpriser helps you switch electricity providers quickly and easily.
Why the issue is live now
Berlingske reported on August 8 that Dansk Folkeparti backs lower food VAT in principle, but opposes the financing. That financing includes temporarily freezing deductions and thresholds so they do not rise with wages.
A broad agreement from January 2026, published by the Finance Ministry, reserved 6 billion kroner annually from 2028 for lower food VAT or zero VAT on fruit and vegetables. Models must be analyzed and reported to the parties in the second half of 2026.
