Could Cheaper Apples Really Change Denmark’s Diet?

Steven Højlund

Writer

January 3, 2026
10:02 pm

Lowering the VAT on fruits and vegetables could encourage Danes to buy and eat healthier, according to experts and supermarket data. But critics warn that changing the tax system might create new problems instead of solving old ones.

Price Cuts Lead to Healthier Baskets

If Denmark reduces the value-added tax, or VAT, on fruits and vegetables from its current 25 percent, people are expected to fill their grocery baskets with more fresh produce. Researchers in consumer behavior at Aarhus University say lower prices almost always drive higher sales on everyday essentials like apples, carrots, and cabbage. Most Danes do not meet the country’s dietary recommendations, so cheaper fresh food could help turn that trend around.

How VAT Works in Denmark

The Danish VAT rate has stayed at 25 percent since 1992, one of the highest in the European Union. VAT is a tax on goods and services collected by businesses on behalf of the government. Some products are exempt, such as books, which will move to a zero percent rate in late 2025.

Interestingly, debates about tax cuts on consumer products have flared up before. The government recently discussed whether to remove taxes entirely on treats like coffee and candy, showing that lower consumer taxes remain a recurring topic in Danish politics.

Supermarkets Test the Impact

To see what might happen if VAT disappears from fruits and vegetables, the German supermarket chain Lidl tried it in its 167 Danish stores during February and March 2024. Sales of fresh produce rose by an average of 13 percent during that period. In lower-income neighborhoods, sales went up by more than 30 percent.

Another chain, Coop 365, reported similar spikes in a shorter campaign. These trials indicated that price-sensitive consumers quickly respond to even small reductions. Lidl said that beyond promoting health, the experiment was also smart business because it attracted more customers.

The idea of differentiated VAT, meaning different rates for different goods, has become a political talking point since Prime Minister Mette Frederiksen mentioned food tax changes in her New Year’s speech.

A Political Hot Potato

Supermarket executives are urging the government to consider a permanent cut or even full removal of VAT on fruits and vegetables. They argue it would help both public health and the climate, while also supporting Danish farmers, since nearly 40 percent of fresh produce sold domestically comes from within Denmark.

After the prime minister’s speech, a coalition of businesses and organizations sent a letter calling for immediate action. They see it as a “win-win” solution for consumers, producers, and the environment.

If VAT dropped to zero, a Danish-grown pointed cabbage that costs 15 kroner today could fall to around 12 kroner. A bag of baking potatoes might be four kroner cheaper. These small savings could add up across households, particularly as tax reductions resurface within broader economic debates.

Criticism from Economists

Not everyone supports the idea. Some economists caution against tampering with Denmark’s long-established VAT system. They believe food prices, which have soared in recent years, are likely to fall naturally as global prices stabilize. One economist pointed out that changing tax policy to tackle a temporary issue could create lasting complications.

Consumer experts from the banking sector also worry that lower VAT would open what they call “a bureaucratic trap.” They prefer targeted aid, such as food subsidies, for households struggling the most. According to them, direct support is more efficient than adjusting taxes across the entire grocery market.

Is It Easy to Change the System?

Lidl’s Danish management insists that technically, removing or lowering VAT would be simple. They claim it could be implemented in-store with minimal effort. However, public administrators warn that even small tax changes can create ripple effects across accounting, auditing, and government reporting systems.

In the end, the government must balance short-term relief for shoppers with long-term fiscal stability. While lower VAT on fruits and vegetables sounds like a straightforward fix, the question remains whether Denmark is ready to open up that complex debate just to make apples and carrots cheaper.