Investigation by Denmark’s Treasury suggests tax reduction would boost fresh produce sales, something the retailer agrees with
Lidl Denmark says it support the reduction or elimination of value-added tax on sales of fresh fruit and vegetables, after a recent trial apparently boosted sales “significantly”.
A report published last week by the Danish Treasury is understood to have drawn a similar conclusion, that a VAT reduction will make shoppers choose healthier products like fresh produce.
“We have long argued for differentiated VAT on fruit and vegetables,” says Claus Krogh, the retailer’s head of corporate affairs, who adds that the extra admin needed to manage different tax bands would not present a major issue.
“We do not believe that technical or administrative obstacles should stand in the way of initiatives that strengthen the health of Danes and make it cheaper to buy healthier food. If the rest of Europe can, so can Denmark. At Lidl, we are at least ready.”
In February and March 2024, Lidl removed an amount equal to the VAT on all fruit and vegetables in its 162 Danish stores.
According to the company, the VAT-free campaign resulted in a 13 per cent rise in fruit and vegetable sales nationwide.
“Based on the campaign, we can see that sales of fruit and vegetables increased considerably during the period, which was particularly evident in municipalities outside the big cities, where sales of vegetables are generally lower,” Krogh adds.
“For example it increased by a full 22.5 per cent in Lolland municipality. Lower prices are therefore part of the solution, as it gives Danes with a tighter budget the opportunity to put more vegetables in the shopping basket, which can help prevent both obesity and cancer and reduce social inequality.”
