The 2026 Finance Bill includes an electricity tax cut, excise duty removal on food products, VAT abolition on books, and tax adjustments for rural properties.

Denmark’s government presented the 2026 Finance Bill on 29 August 2025, proposing tax incentives, reducing the electricity tax, and abolishing the value added tax (VAT) on books.

The bill, titled “A Better Everyday Life – A Stronger Denmark,” merges welfare investments with significant tax and duty reductions, designed to enhance household finances and foster economic growth.

The key provisions of legislation are as follows:

Electricity tax reduction
The electricity tax will be lowered to the EU minimum (0.8 øre per kWh) in 2026 and 2027.

Excise duty removal on food products
The government will phase out excise duties on coffee, chocolate, and confectionery to reduce administrative burdens on businesses.

VAT abolition on books
VAT will be abolished on printed books, e-books, and audiobooks to make literature more accessible for residents.

Tax adjustment for rural properties
The government plans to adjust valuation rules and ease taxation of rural properties and allotment gardens.