At a press conference, Prime Minister Ulf Kristersson (M) together with the other party leaders in the Tidö cooperation presents one of the bigger news in the budget for 2026 – reduced food VAT.
We will make sure that there will be more money in the wallet, says Ulf Kristersson.
Much of the autumn budget is, according to Kristersson, about facilitating economically for households. For a family with two children, the proposal could make the food basket 6,500 kronor cheaper in a year, if the reduction gets full impact.
New commission
A difficulty with reducing food VAT is that it is not certain that the reduction will affect food prices. Therefore, a food price commission is set up under the leadership of the Consumer Agency, which will monitor price developments.
Those who do not want to reduce the price when we create conditions for lower prices will be noticed in a way that will be noted, says Ulf Kristersson.
Minister for Energy and Food Ebba Busch (KD) says that the government expects the VAT reduction to be noticed in food prices and that the intention is not for it to end up in the pockets of the food giants.
We will keep an eye on the food giants, she says.
Temporary reduction
The proposal is that VAT on food is temporarily reduced from April 1, 2026, to December 31, 2027. Reducing VAT costs a lot of money, for 2026 the cost is estimated to be 16 billion kronor and 21 billion for 2027.
Finance Minister Elisabeth Svantesson (M) has promised an expansive budget with investments totaling 80 billion kronor. The budget for 2026 will be presented in its entirety on September 22.
The government and SD are not alone in wanting to see reduced food VAT. All opposition parties have different proposals to reduce food prices.
"What the government is now presenting will certainly help in everyone's wallet, but it gives the most savings to those who buy expensive luxury food", comments Janine Alm Ericson, economic policy spokesperson for The Green party, who has driven the abolition of VAT on basic goods.
The Left Party's party leader Nooshi Dadgostar says that it is important that the proposal leads to price reductions that benefit those who shop, and does not become an "Ica subsidy".
For this, a comprehensive price control is required, with clear sanctions when the food giants do not follow the rules, she says.
