The Danish Government will scrap tax on a range of food and drink items, including coffee, in a bid to alleviate rising household costs.
The coffee duty was initially introduced in Denmark in 1930 as part of a luxury goods tax and currently adds around 25 per cent to the cost, or DKK 7.67 (US$1.21) per kilogram of roasted coffee.
On 22 August, Prime Minister Mette Frederiksen’s administration announced the tax would be phased out, being halved in 2026 before being removed completely in 2027.
“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 country’s tax on chocolate, which has been in place for more than 100 years, will also be removed. At present, it also covers products containing cocoa, confectionery, candied fruits, and chewing gum.
It is estimated the tax cuts will cost the Danish treasury about DKK2.4 billion kroner (US$370 million) in lost revenue.
