João Quelhas: Raising VAT on food again could prove controversial
In April 2026, Sweden cut VAT on food from 12 to 6 percent – a measure intended to be temporary. However, with a general election approaching, it may prove difficult for politicians to raise the tax again, João Quelhas, a PhD student in economics at Stockholm University, told the Swedish newspaper Dagens ETC.
João Quelhas, a PhD student in economics at Stockholm University.
When the VAT reduction was introduced, Finance Minister Elisabeth Svantesson said the lower rate would remain in place until 2028. But many observers doubt that the government will ultimately restore the previous level, Dagens ETC writes.
”The VAT increase will have a major impact on house good budgets and on inflation,” says João Quelhas, interviewed in the article.
Quelhas has studied the effects of a similar VAT reduction in Portugal. There, the lower VAT rate applied only to selected food products, unlike in Sweden, where the reduction covered all food items. When Portugal introduced the measure, inflation was close to 20 percent, whereas inflation in Sweden was much lower. Another difference, according to Quelhas, is that the Portuguese VAT cut was not driven by political considerations.
Last updated: 2026-06-01
Source: Department of Economics