Denmark plans to abolish taxes on coffee and confectionery in a phased manner starting from next year to ease the burden of higher costs facing consumers.
The taxes would first be halved by the coalition government in 2026, followed by the complete removal in 2027 under the so-called Finance Act, a spokesperson for the Liberal Party, or Venstre Party, confirmed with Just Food.
Venstre, along with coalition partners the Social Democratic Party (Socialdemokratiet) and Moderates (Moderaterne), will put forward the Finance Act for 2026 next week. It will then be presented to Denmark’s parliament (Folketing) for consultation, the spokesperson said.
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The coffee tax was introduced in 1930, and the chocolate tax is over 100 years old, according to a statement from Venstre, which added the removal of the taxes would amount to DKr2.4bn ($372m).
Both taxes are set at around 25%.
Deputy Prime Minister and Liberal Party chairman Troels Lund Poulsen said: “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.
“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.”
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By GlobalDataHe added that the tax removal should be seen “in the context of the fact that we have delivered the largest personal tax cuts in ten years”, and that it will be “the largest tax cuts on groceries in ten years”.
For example, Denmark’s tax ministry estimates that 500 grams of coffee could become about 6% cheaper after the tax cut, according to Venstre.
Since 2020, the price of coffee in Danish supermarkets has increased by 47%, while chocolate has risen by 40%, Venstre said.
The Venstre spokesperson suggested that because the coalition holds a majority in Denmark’s parliament, the tax removal plan is likely to be approved.
