Op-ed: Differentiated VAT is a really, really bad idea
Several political parties have proposed introducing differentiated VAT with a lower rate on food items. Considerations for low-income groups struggling to make ends meet, a desire to promote public health, and rising food prices have been cited as reasons for lowering VAT on certain foods.
However, regardless of the problem one wishes to solve, there are better solutions than changing VAT. Altering VAT would be an unnecessarily expensive way to achieve the intended goals. And the unnecessary additional cost of solving these issues through VAT would have to be paid by citizens through higher taxes, reduced public services, or lower social benefits.
On Friday 17 October 2025, Politiken published an op-ed by, among others, Senior Analyst Marie Møller Kjeldsen and Centre Director Michael Svarer arguing for the preservation of a uniform VAT rate and proposing alternative (and more cost-effective) solutions to the challenges that differentiated VAT has been suggested to address.