Government halves food VAT, grocery stores adjust prices

The government is halving the food VAT from 12% to 6% starting April 1, 2026, a reduction intended to lower grocery prices for consumers. Major grocery chains like Coop, Lidl, Willys, Ica, and Hemköp are implementing price reductions, with some starting as early as March 30 to coincide with Easter shopping. Many are updating price tags, a significant undertaking for stores using paper labels. The VAT reduction is temporary, lasting until December 31, 2027, and retailers hope it will be extended. A government commission will monitor food prices to ensure the savings reach consumers.