Denmark is set to continue the chocolate and sugar tax, following the establishment of a new four-party coalition led by Prime Minister Mette Frederiksen, who has secured a third term.
This tax was originally scheduled for elimination on July 1 under the preceding administration, but circumstances changed after early elections were announced in March, leading to a new governing body.
Details about the decision to maintain the chocolate and sugar tax were found within a comprehensive 77-page document outlining the coalition’s objectives. One key excerpt stated: “The government will, among other things, provide financing for the tax reform and the described corporate tax relief, cf. ‘A Strong Business Sector’, by maintaining the chocolate and sugar tax….”
With the new government formed in June, it consists of a minority coalition comprising Frederiksen’s Social Democrats (Socialdemokratiet), alongside the Social Liberals (Radikale Venstre), the Green Left (Socialistisk Folkeparti), and the Moderates (Moderaterne).
In August, a representative of the Venstre Party revealed to Just Food that earlier plans by the previous coalition intended to remove both the confectionery tax and a similar tax on coffee, currently set at approximately 25%.
The coffee tax has been in place since 1930, while the chocolate tax has been established for over a century. The proposed changes included a phased reduction beginning with a 50% cut in 2026, aiming for complete elimination by 2027, as noted by the Venstre spokesperson in August.
Just Food has reached out to Denmark’s tax ministry for insights regarding the coffee tax’s status under the newly formed government, and for clarification on future adjustments to the chocolate and sugar levies.
The decision to retain the sugar tax was anticipated. Annette Zeipel, CEO of the confectionary firm Toms Group, had forecasted this outcome in May.
In her conversation with Just Food, Zeipel explained: “The moment they announced the election, everything that had not been fully approved in Parliament went on hold. The world has changed since and I think there will be other priorities. Nobody in the industry now expects the sugar tax to be phased out.”
She further remarked, “We didn’t expect a huge volume boost from it but, of course, there was a lot of work preparing for it because it would shift the whole relative structure of price points for certain products in the market.”
On June 15, Zeipel reiterated in a statement: “We have long been planning for the abolition of the sugar and chocolate tax and have invested significant resources in preparing for it.
“When the framework conditions are changed so late in the process, it results in additional work and adjustments. This underscores how crucial stable and predictable conditions are if we are to plan long term and invest in development and innovation.”
