Food VAT is being reduced - this is how the Social Democrats want to pressure prices in the long term

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Food VAT is being reduced - this is how the Social Democrats want to pressure prices in the long term
Photo: Claudio Bresciani/TT

Today, food VAT is being halved from twelve to six percent until December 31, 2027. The Social Democrats' economic policy spokesperson, Mikael Damberg, welcomes the government's reduction, but warns that the uncertain global situation may mean that the price reduction will not last long.

"We want an offensive to push down prices in stores over time," he says.

According to him, it is primarily increased competition between grocery stores that can result in lower prices in the long term.

Many thousands of SEK

"The Food Price Survey has found that if a discount store is established, a family with children can save up to 22,000 SEK a year by shopping there," says Damberg.

"Even if you don't shop at that particular discount store, it can push down prices at existing stores and result in savings of perhaps 7,000 SEK per year."

In Sundsvall, the city planning office has been tasked with actively looking for places where new stores can open. Damberg wants to spread this model to more municipalities, for example through the Swedish National Board of Housing, Building and Planning.

Gets irritated

The Social Democrats also want to increase government support for rural stores, tighten competition at the wholesale level and introduce rules for clearer labeling in stores.

"Customers should be able to compare prices without being ripped off," says Damberg.

The Social Democrats have proposed warning triangles on packages in which the contents have been reduced, while the price remains the same.

"You get terribly irritated when you notice that companies have reduced package sizes," says Damberg.

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TT News AgencyT
By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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