Denmark’s coffee and chocolate tax will be scrapped under a government plan aimed at easing high food prices and cutting red tape. The cabinet proposes to abolish excise duties on coffee, chocolate and sweets, with the annual fiscal cost covered from the state’s budget margin, according to ministers speaking on 22 August 2025.
Why the coffee and chocolate tax is being scrapped
The government argues that the century‑old levies are complex to administer and out of step with today’s consumption. Economy Minister (Økonomiministeren) Stephanie Lose (V) said the change will “give Danes more money in their hands” and reduce bureaucratic burdens for small businesses such as bakeries and chocolatiers.
Denmark is currently the only country in Europe with a dedicated chocolate duty, a peculiarity often criticised by industry groups and retailers.
What the reform covers: coffee, chocolate and sweets
The proposal removes duties on coffee, coffee substitutes and extracts, as well as on chocolate and sugar confectionery, including licorice, nougat and marzipan. The package also covers items such as candied fruit and certain foam‑based cakes.
The total fiscal impact is estimated at about €322 million per year (DKK 2.4 billion), financed within the so‑called budgetary “råderum”.
Price impact: modest savings and lower admin costs
For consumers, the immediate price effect is expected to be limited but noticeable: a typical 500‑gram coffee bag could be roughly DKK 5 cheaper (≈€0.67), while a 200‑gram chocolate bar may fall by about DKK 6.5 (≈€0.87) once the duty is removed.
Retailers have signalled they will pass on the cuts on products where they directly pay the levy, especially private‑label goods. Bakeries and specialty shops highlight that fewer compliance rules and clearer classifications should free up time and costs.
Health debate: sugar consumption concerns
Public‑health experts warn that cheaper confectionery could increase sugar intake in a country that already consumes sweets at high levels. Professor Inge Tetens notes the potential links to lifestyle diseases such as obesity, cardiovascular illness and diabetes. Health Minister (Sundhedsministeren) Sophie Løhde (V) counters that the chocolate duty has only a limited effect on population health and is cumbersome for businesses to manage.
Politics and timing: what happens next
The measure will be tabled with the government’s upcoming finance bill (Finansloven). Precise timing—whether a single‑day repeal or a phased approach—has not yet been confirmed.
Supermarket groups, , like Salling Group, say they are ready to adjust price tags once legal changes take effect, while opposition figures and some coalition voices have floated alternatives such as lower VAT on fruit and vegetables. The government maintains that broad VAT differentiation would take years to implement and add costs for businesses.
Nordic and EU context: a rare chocolate duty
The abolition of the coffee and chocolate tax would bring Denmark in line with other EU countries, where such product‑specific duties have largely disappeared. The decision could ripple into broader Nordic debates on food taxation, balancing price relief and administrative simplicity against public‑health objectives.
Further discussion is likely as parliament scrutinises the budget and as households continue to feel the pinch from recent food‑price inflation.
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