Denmark's food VAT cut plan criticised over financing model

The Danish government announced a plan to eliminate VAT on fruit and vegetables and halve the VAT on all other food items, estimating a cost of about 17.4 billion kroner per year. To fund the reduction, the proposal would freeze tax deductions and income‑related thresholds for two years, effectively raising taxes for many workers. Danish People's Party (DF) finance spokesperson Anders Vistisen called the financing approach a “deeply unsympathetic model,” arguing that taxpayers would bear higher taxes while receiving only limited relief on food prices. DF suggested alternative sources such as development aid or converting Ukraine assistance into loans. The plan has also drawn criticism from other parties, including Venstre and the Conservatives, who described the scheme as a “stealth tax.”