The political battle over food prices is heating up. VAT reduction may change bills, but doubts remain
Sylvi Listhaug proposes reducing VAT on food in Norway. The Progress Party leader wants to gain support from other parties. She points to rising prices and the example of Sweden.
The example of Sweden shows that prices did not drop as clearly as expected.
Fot. Adobe Stock, licencja standardowa
After the decision to cut fuel taxes, the Progress Party is turning its attention to food prices. Sylvi Listhaug is appealing to the Conservative Party, Christian Democratic Party, and Centre Party for joint action. In her view, lower VAT is meant to reduce household expenses. However, the proposal is sparking various political reactions and questions about its effectiveness.
Political initiative and arguments
Listhaug emphasizes that food prices have risen significantly. She draws attention to the situation of low-income families. According to her, a VAT reduction should directly affect store bills. The Progress Party leader points out that Sweden has introduced a similar solution. She calls for a parliamentary majority to support the changes.
The politician notes that retail chains declare they will pass the reduction on to customers. In her opinion, social and media oversight mechanisms are supposed to guarantee this. Listhaug has previously indicated possible sources of funding for the reform, including cuts in other areas of public spending. The proposal is intended as a further step after the reduction of fuel taxes.
The politician notes that retail chains declare they will pass the reduction on to customers. In her opinion, social and media oversight mechanisms are supposed to guarantee this. Listhaug has previously indicated possible sources of funding for the reform, including cuts in other areas of public spending. The proposal is intended as a further step after the reduction of fuel taxes.
The proposal concerns basic products. Photo: Adobe Stock, standard license
Skepticism and alternatives
Some politicians question the effectiveness of a VAT reduction. The Progress Party believes the solution is not very precise. According to the party, the greatest benefits may go to higher-income individuals. There is also uncertainty as to whether consumers will actually feel a price drop. Income tax cuts are being considered as an alternative.
The Christian Democratic Party presents a different approach to supporting households. They point to the possibility of increasing family benefits and tax credits. According to calculations, such solutions could provide stronger support for low-income individuals. The Centre Party has long supported lower VAT on food and previously proposed reducing it to 10 percent.
The Christian Democratic Party presents a different approach to supporting households. They point to the possibility of increasing family benefits and tax credits. According to calculations, such solutions could provide stronger support for low-income individuals. The Centre Party has long supported lower VAT on food and previously proposed reducing it to 10 percent.
The debate over reducing VAT on food is taking place alongside an analysis of the effects of previous tax decisions. Market reactions and price levels after changes in other areas are being observed. The results of these observations may be significant for further work on possible changes to food taxation.
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