The Swedish government plans to halve value-added tax (VAT) on food to 6% in its 2026 budget bill to help boost households and the wider economy, Prime Minister Ulf Kristersson told a press conference on Thursday. Growth has stalled amid tariff related uncertainty, with households and businesses holding hesitating to spend despite a series of rate cuts.

Deputy Prime Minister Ebba Busch said the VAT cut would be temporary, between April 2026 and December 2027.

“This is a reform that will have the greatest effect on households that have had the toughest time,” she said on social media X.

The right-wing coalition government said last week its budget bill for 2026, an election year, will include 80 billion crowns of unfinanced measures to boost the economy.

The government, which sees 0.9% GDP growth this year and 3.0% in 2026, will submit the budget bill to parliament on September 22. Analysts have said it is likely to contain income and corporate tax cuts as well as unfinanced spending.