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Reduced VAT on food – price effect, distribution profile and cost effectiveness (RiR 2018:25)

The VAT on food was reduced in 1996 in order to enhance the purchasing power of low-income earners and families with children. The audit of the Swedish National Audit Office indicates that other measures can achieve the same result – at half the cost. Thus, the measure is not cost effective.

Updated: 14 January 2019

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