Posts Tagged ‘consumer’
If at first you succeed Sweden cuts VAT on food
A temporary reduction in the value-added tax on food items takes effect in Sweden today. As part of an 80 billion kronor (€7.35 billion) package passed in September aimed at supporting households and the economy, particularly in response to rising food prices and inflation, Swedes will pay 6% on retail food items until the end of 2027. (To the ire of restaurateurs, the VAT on prepared foods eaten on premises will remain at 12%.)
For the average family, the savings are expected to add up to 6,500 kronor (€594) per year, and the hope among the lawmakers who agreed on the reduction is that voters will remember where the money came from when they go to the polls later this year. But with an annual median income in the neighbourhood of 400,000 kronor, Swedes will be more concerned that the reduction will be paid for by reduced spending on other programmes.
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Rising fuel prices stemming from the closing of the Strait of Hormuz also threaten eat up any savings at the supermarket. But there is a tax cut for that too: starting on 1 May, the government will reduce fuel duties to the EU minimum, in effect, extending until September a reduction that has been in place since 2022.
Note: This article originally incorrectly stated that all prepared foods will continue be assessed a 12% VAT. Sorry.
FURTHER READING
} Sweden to temporarily halve food VAT in election-year budget (Reuters)
} Sweden: VAT for food is lowered (Nordea)
} Sweden’s gasoline tax cuts make driving cheaper — but at what cost? (Stockholm School of Economics)
} Sweden’s government to cut taxes on petrol and diesel (Svergies Radio)
“Payment Radar”: non-cash payments in Latvia have reached a record-breaking share
The most recent (spring 2025) “Payment Radar” published by Latvijas Banka suggests that the ratio between non-cash and cash payments in Latvia was 78% to 22% in February 2025. This represents the highest-ever share of non-cash payments.
Relative to the figures from February and August 2024, the share of non-cash payments has climbed by 1 percentage point (from 77% to 78%).
Read full announcement (external link)
Originally published on 31 Mar
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