Three quarters (76%) of Swedish consumers think it is a good or very good idea to abolish VAT on sustainability labelled food. Even more, 92 per cent, say they would increase their consumption if VAT was reduced or abolished altogether, according to a survey by the consultancy Parlametric in 2022.

A total of 1,000 respondents from across Sweden took part in a digital survey on sustainable food consumption at the end of 2022, carried out by Parlametic on behalf of the grocery group Axfood. “We want to see a change in the food system where it pays to both produce and consume more sustainably. Reducing or eliminating VAT on sustainability-labelled goods is the most effective way to bring about a rapid and noticeable change,” says Axfood’s head of sustainability Åsa Domeij in a comment.

Last year Axfood presented a proposal to reduce or abolish food VAT to drive production and consumption in a more sustainable direction. Now, with food price inflation causing more consumers to opt out of sustainability-labelled food, the proposal is being raised again, according to the survey results.

“Reducing or eliminating VAT on sustainability-labelled goods is the most effective way to bring about a rapid and noticeable change”

“Reduced or abolished VAT on sustainable food would therefore have a double effect, both by reducing the price level for consumers and increasing the pace of the green transition to more sustainable production,” says Åsa Domeij. The measure gives consumers the opportunity to shop sustainably at lower prices. At the same time, food producers and other businesses in the food chain will be motivated to comply even more with sustainability labelling requirements to increase the competitiveness of their products.

The proposal to use differentiated VAT o stimulate more sustainable consumption has already reached the EU. “This is a clear signal that Swedish politics must act now and investigate how a solution can be implemented,” says Åsa Domeij.

Source: Axfood wants to scrap VAT: “It must be worthwhile to produce and consume sustainably” (Livsmedek i fokus)

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