DF demands 2kr fuel tax cut to back tax reform

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Sandra Oparaocha

DF demands 2kr fuel tax cut to back tax reform

Dansk Folkeparti is demanding that taxes on petrol and diesel fall by at least two kroner per liter for at least one year before the party will back the government’s tax reform.

The demand was made by DF finance spokesman Anders Vistisen ahead of negotiations at the Ministry of Taxation on November 4, 2026, DR reports. Per Vistisen, DF is ready to enter talks on the government’s tax package if fuel taxes come down by several kroner.

According to Vistisen, two kroner is the minimum level, and the reduction must last at least a year. DF’s own position is that the cut should be permanent. The party estimates the two-kroner reduction would cost just over 3 billion kroner.

Tax Minister Jakob Engel-Schmidt of Moderaterne declined to be interviewed about the DF offer, DR notes.

What the government has put on the table

The government’s reform contains three tax cuts, as described by DR. One removes the middle bracket tax, known as mellemskatten, for annual incomes above 641,200 kroner after labor market contributions. A second abolishes the so-called toptop tax on incomes above 2,592,700 kroner.

The third element lowers corporation tax from 22 percent to 19 percent. Enhedslisten and Alternativet, which normally support the government, will not back the three measures. That leaves DF’s 16 seats in play as the government looks for a majority.

On the financing side, the government wants to cut business subsidies, reduce SU for students living at home and tighten access to unemployment benefits for new graduates. Vistisen said DF is prepared to look at those measures if lower fuel taxes become a central part of the deal.

The four other center right parties, Danmarksdemokraterne, Venstre, Liberal Alliance and De Konservative, are negotiating as a single bloc. They want tax relief at the bottom as well, so that everyone in work gains. As stated by Danmarksdemokraterne tax spokesman Hans Kristian Skibby, the party wants a direct tax cut that also benefits lower incomes.

Liberal Alliance tax spokesman Mads Strange said he shares the aim of making it cheaper to be Danish. According to Strange, his party would rather let people keep more of their own money than adjust individual duties. Both parties welcome lower fuel taxes, but say the measure is not enough on its own.

Why the fuel demand lands now

Lower pump prices were already in the air before Wednesday’s talks. Kristeligt Dagblad reported on November 3, 2026, that the government was considering reduced petrol and diesel taxes as a concession to secure DF’s support. That coverage listed the same package of abolishing the middle and toptop taxes plus the corporation tax cut.

What the talks could mean for international students, graduates and drivers

Two of the financing proposals touch groups where internationals are well represented. SU is the Danish state study grant, and the government proposal targets the rate for students who live at home with their parents. The second proposal would make it harder for new graduates, known in Danish as dimittender, to receive dagpenge, the unemployment benefit paid through an a-kasse. No final rates, dates or eligibility rules have been agreed, and DR reports only that DF is willing to discuss them.

The fuel element would work through the excise duty on petrol and diesel, which is part of the pump price paid by every driver regardless of nationality. A two-kroner reduction per liter would lower the running cost of a fuel powered car, but DF’s demand is for a minimum of one year, not a permanent change. The income tax elements, including the middle bracket threshold of 641,200 kroner, would apply to taxable income in Denmark under the usual rules for income taxes in Denmark.

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Sandra Oparaocha Writer
Sandra Oparaocha covers Danish politics for The Danish Dream, following the latest political news and explaining what it means for internationals living in Denmark.
Danish News in English for Internationals - The Danish Dream

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