Denmark’s coalition government is poised to abolish taxes on coffee and confectionery. This phased approach begins next year and aims to alleviate the financial burden on consumers.
The taxes will see a reduction, halving in 2026, followed by complete elimination in 2027 under the proposed Finance Act. A spokesperson for the Liberal Party, known as the Venstre Party.
The Venstre Party, in collaboration with coalition partners such as the Social Democratic Party (Socialdemokratiet) and Moderates (Moderaterne), is set to introduce the Finance Act for 2026 next week. The proposal will subsequently undergo deliberation in Denmark’s parliament (Folketing).
Historically, the coffee tax was enacted in 1930, and the chocolate tax has persisted for over a century. According to Venstre, the removal of these taxes could result in savings of approximately DKr2.4bn ($372m).
Both taxes currently stand at around 25%.
Deputy Prime Minister and Liberal Party chairman Troels Lund Poulsen articulated, “By removing the two taxes, we achieve two things: We make it cheaper to be a Dane, and we also make it easier to run a business because we remove a lot of hassle and bureaucracy.”
He continued, “By abolishing the two taxes, we are sending 2.4 billion kroner back to the Danes, and that kind of thing is always great for a Liberal Party member. Both coffee and chocolate have risen a lot in price, and by abolishing taxes we will now take the top off the prices.”
Poulsen emphasized that the tax removal should be viewed alongside the largest personal tax cuts in a decade, stating it represents “the largest tax cuts on groceries in ten years.”
For instance, the Danish tax ministry estimates that the price of 500 grams of coffee could drop by roughly 6% following the tax cut, according to Venstre.
Since 2020, coffee prices in Danish supermarkets have surged by 47%, while chocolate prices have increased by 40%, as reported by Venstre.
The Venstre spokesperson also noted that due to the coalition’s parliamentary majority, the plan for tax removal is likely to gain approval.
