A majority in the Danish Parliament voted in favour of and adopted the 2026 Finance Act on Thursday, which was agreed upon by the government and the Conservative Party as the only opposition party.
This means that a reduction in the electricity tax will be introduced for two years, and that VAT on books and taxes on sugar, chocolate and coffee will be removed. There will be cheaper day care and new priorities for the elderly, including a reduced co-payment for food services.
Parents who lose a co-parent will be entitled to 12 weeks of paid leave, and the increase in taxes on electric cars, which was otherwise due to come into effect in 2026, will be postponed for a year while politicians negotiate further.
It caused a stir when the Conservative Party agreed to an agreement because the party was the only opposition party to agree. For the first time in this government period, the SF is not included in the Finance Act, which for the People's Socialists gave a blow to the confidence of the Social Democrats. On Wednesday during the third reading, there was criticism from the SF.
- In the most expensive Finance Act, if not ever, then at least close to it, they have chosen to stuff the gift bag with one large tax relief package after another, said Finance Spokesperson Sigurd Agersnap (SF).
Finance Spokesperson Ole Birk Olesen (LA) would rather see targeted tax relief than tax relief.
- Why not let people keep some money when they pay their income tax. That is why we have a proposal that no one should pay tax on the first 5,000 kroner of monthly salary, said Ole Birk Olesen.
In connection with the publication of the new Finance Act in October, Minister of Economy Stephanie Lose (V) said that the government is making it cheaper to be a Dane.
- We have delivered the largest personal tax reductions in Denmark in over ten years - and now also the largest tax reductions on groceries in more than a decade. In short, we are ensuring that Danes have more money in their hands, she said in a press release.
This is probably the last Finance Act that will be passed before the general election, which is to be held within a year.
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