Sylvi Listhaug proposes fuel tax cuts and food VAT reduction

Progress Party leader Sylvi Listhaug is calling for the reintroduction of fuel tax cuts and a halving of the VAT on food in Norway. She argues that the current economic situation is significantly more severe than when previous tax cuts were implemented, citing changes in refinery capacity, the oil market, and distribution models.

Listhaug criticized the Conservative Party and the Labour Party for failing to recognize the gravity of rising fuel costs. She noted that approximately half of the price consumers pay at the pump consists of taxes. The proposal comes amid concerns that potential US export bans on diesel could increase pump prices by as much as 5 NOK per liter.

Regarding food costs, Listhaug pointed to Sweden, where the food VAT has been reduced to 6 percent, compared to Norway's 15 percent. While critics argue that VAT cuts are not targeted enough and may benefit profitable grocery giants like Coop, Norgesgruppen, and Rema 1000, Listhaug maintains the measure is necessary to assist those struggling with the cost of living.