Denmark: Electricity tax temporarily reduced to EU minimum level
Denmark: Electricity tax temporarily reduced to EU minimum level
Denmark has temporarily reduced its electricity tax to the EU minimum level as part of a broader strategy to support the green transition and ease cost pressures for households and certain businesses. Effective from 1 January 2026, the electricity tax has been lowered to the minimum permitted under EU law for the period 2026-2027, significantly reducing the tax burden on electricity consumption. The measure primarily benefits households, municipalities, non‑profit organisations and other entities with limited VAT deduction, while the impact on fully VAT‑deductible businesses is limited. Overall, the reduction is intended to encourage greater use of electricity over fossil‑based alternatives and support increased electrification.