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The government wants to investigate different VAT rates on food

The Swedish government has proposed investigating the possibility of differentiated VAT rates on food items, aiming to reduce costs for households' 'necessary groceries'. The proposal seeks to lower taxes on commonly purchased staple foods, potentially making them cheaper for working families. However, the plan has already faced criticism, particularly from the Livsmedelsföretagen industry group, which argues that defining 'necessary' food items is subjective and should not be decided by the state. The current temporary reduction in food VAT from 12% to 6% applies until December 31, 2027. Professor Daniel Waldenström notes that while broad tax cuts benefit many, less differentiated VAT rates could be more beneficial for the overall economy.