Danish Fiscal Watchdog Warns Against Plan for Lower VAT on Food

Denmark’s fiscal watchdog urges the government to drop plans to introduce lower VAT rates on food.

• Differentiated VAT is not targeted and is “very administratively burdensome,” Economic Councils say in new report
• Other instruments are more cost-effective for reducing consumers’ climate footprint or improving public health, such as excise duties on CO2-intensive consumer goods or cigarettes, watchdog says
• NOTE, Sept. 11: Denmark Plans to Introduce Differentiated VAT on Food: Borsen

To contact the reporter on this story:
Sanne Wass in Copenhagen at swass7@bloomberg.net

To contact the editors responsible for this story:
Kati Pohjanpalo at kpohjanpalo@bloomberg.net

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