A sustained reduction in value-added tax (VAT) on fruits and vegetables could potentially improve public health, according to a food expert. Earlier this year, the grocery chain Lidl reduced prices on fruits and vegetables in line with the VAT, resulting in a significant increase in sales. Lidl’s “VAT-free” campaign in February and March led to a nationwide increase in the sales volume of fruits and vegetables by 13%, with some municipalities reporting a rise of over 20%.

This aligns with previous research by Jørgen Dejgård, a professor at the Department of Food and Resource Economics at the University of Copenhagen, who predicts a 15-20% increase in vegetable consumption if VAT were completely abolished. Dejgård emphasizes that a lower VAT on fruits and vegetables would make these foods more affordable for consumers, thereby improving health outcomes. He notes that such a measure would enhance adherence to dietary guidelines from the Danish Health Authority (Sundhedsstyrelsen), which recommends a daily intake of 600 grams of fruits and vegetables, half of which should be vegetables.

A recent survey by Voxmeter showed that only 55% of Danes consume vegetables daily. This could be improved with lower VAT rates on healthy foods, a consideration currently being examined by Minister of Taxation Jeppe Bruus (Jeppe Bruus). In May, Bruus stated that there is potential in considering differentiated VAT rates on healthy items like fruits and vegetables. An analysis is underway to assess the societal costs of such a measure, with results expected by autumn.