Swedish government to halve VAT on food to help boost households

The Swedish government plans to halve value-added tax (VAT) on food to 6% in its 2026 budget bill to help boost households and the wider economy, Prime Minister Ulf Kristersson told a press conference on Thursday. Growth has stalled amid tariff related uncertainty, with households and businesses holding hesitating to spend despite a series of rate cuts.

Deputy Prime Minister Ebba Busch said the VAT cut would be temporary, between April 2026 and December 2027.

“This is a reform...