Coffee prices have risen sharply, and the ruling party wants to remove the tax, which Denmark is one of the few countries to have.
When you look at the price increases on coffee in the past year, you might need a cup to strengthen yourself. It has been bitter for producers and consumers, which is why the Moderates want to remove the coffee tax.
Prices have fallen in recent months because the harvest in Brazil looks set to be good, but overall they have increased by almost a quarter in the past year.
Therefore, the ruling party wants to remove the tax.
“The coffee tax is an outdated tax on Danes’ everyday coffee, and we think it should be abolished. Not least because world market prices for coffee have increased significantly since 2021,” says tax spokesman Ammar Ali, who is deputy to Monika Rubin.
The Danes are one of the biggest coffee drinkers in the world, with an average consumption of 6.6 kilos of coffee per capita annually.
It will cost the treasury around 300 million kroner per year to abolish the tax on coffee.
The price of coffee has increased significantly compared to the general price trend. Ammar Ali emphasizes that Denmark is one of the few countries in Europe with a separate tax on coffee.
In general, the Moderates are against taxes and would like to remove several, but the chocolate tax, which is also distorting competition and historically expensive, is not part of this proposal.
“Well, what about that, you might say. That’s also an option. Well, there are a lot of taxes out there, so the chocolate tax could also be something we want to look at,” says Ammar Ali.
The proposal has not been agreed with the other government parties, but the rapporteur will work to obtain a majority in the Folketing.
According to the Danish Chamber of Commerce, the coffee tax was introduced in Denmark in 1930 as a tax on luxury goods.
Today, coffee is common property, according to the tax rapporteur. He believes that this creates unnecessary administration and costs for citizens and businesses, which the Danish Chamber of Commerce has previously argued for.
“The administration of the tax takes resources away from their core tasks and is not least difficult for exporters who have to request a refund. In other words, politicians need to remove this peculiar tax,” says Morten Langager, director of the Danish Chamber of Commerce, in a written comment.
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