The Danish government has announced that it is scrapping taxes on coffee and chocolate to provide financial relief to households grappling with rising costs.
Prime Minister Mette Frederiksen’s administration decided on the measure on Friday, aiming to give Danes some breathing room amid high inflation.
“We have chosen to implement a step that will have an immediate impact on people’s lives. They will quickly notice more money in their wallets,” Deputy Prime Minister Troels Lund Poulsen said during an interview with TV2.
The Danish tax agency estimates that the removal of the tax will reduce the price of a packet of coffee by 5 kroner (approximately €0.66).
The chocolate tax, considered Denmark’s oldest tax, currently applies to all products containing cocoa, confectionery, candied fruits, and chewing gum.
Prices for chocolate in Denmark have risen by over 25% in the past year, while coffee prices have surged by 35.5%, according to recent statistics. Overall food prices have increased by 6.5% over the same period.
While the tax cuts aim to benefit consumers, they will cost the Danish treasury an estimated 2.4 billion kroner (€321 million) in lost revenue.
