The Ministry of Finance decided to reduce VAT on food to lower household grocery costs.

Sweden’s Ministry of Finance released a draft proposal to lower the VAT on food from 12% to 6% for a limited period.

This announcement was made on 25 November 2025.

The measure aims to make grocery bills more affordable for all households, especially as the prolonged economic downturn and earlier high inflation continue to affect Swedish families. Lower-income households are particularly impacted, as they spend a larger share of their income on food.

Included in the 2026 budget bill, the temporary VAT reduction is projected to save a family with children around SEK 6,500 per year on a typical grocery basket.

The temporary VAT reduction on food is proposed to apply from 1 April 2026 until 31 December 2027.