Few changes in price after restaurant tax cut

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Despite a significant decrease in value added tax, VAT, (moms) for restaurants in Sweden coming into effect at the beginning of the new year, few businesses have lowered their prices accordingly.

The government invested billions of kronor in a controversial move to reduce taxes for the restaurant business, and many Swedes saw this as their chance to afford a few more visits to eateries countrywide.

But according to a survey by the Sveriges Television regional news programme Östnytt, that might just have been wishful thinking.

The survey found that only six out of 26 restaurants in the area had lowered their prices, and that a mere seven were planning to hire more staff.

And when newspaper Metro did a similar survey, they found that only three out of the 30 restaurants they visited had lowered the prices on their menus after the new tax rules were put into effect.

Björn Lundell at the Swedish Hotel and Restaurant Association said the numbers are disappointing.

"It's not nearly enough," he told SVT.

"We encourage all our members to make the most of this tax reduction."

So far this seems to be limited to larger corporations such as fast food restaurants McDonalds and its Swedish counterpart Max, which have both lowered the prices on their menus and are also looking to hire.

But there is still hope for Swedes who wish to save a few kronor on eating out, Lundell said.

"We are asking everyone to have some patience. It's only been a few days since the new tax was introduced," he told Östnytt.

THELOKAL