Sweden to Cut Tax on Food to Support Households in Election Year

Sweden’s government, nearing an election year, proposed halving value-added tax on food as it seeks to give a financial boost to cautious households in the largest Nordic nation.

The finance ministry and central bank have highlighted private consumption as a key source of weakness in the Swedish economy which has trailed the euro area since the pandemic. In its latest policy statement in August, the Riksbank said households remained cautious about their spending.

The value-added tax rate on food will be reduced from 12% to 6% from April next year until the end of 2027, according to a proposal the ...