Reducing the VAT is an inefficient way to compensate consumers for higher prices.
Lower VAT on fruit and vegetables sounds simple, but leads to more bureaucracy.
Discussions of differentiated VAT and specific excise taxes have recently gained momentum in public debate. Special tax schemes on specific goods may be desirable if policymakers aim to influence consumer behavior. However, broader use of differentiated VAT and taxes tends to increase bureaucracy. If the goal is to support low-income families, it can be done more efficiently through targeted tax changes at the lower end of the income distribution, rather than by lowering VAT on food—even though low-income groups spend a larger share of their income on food,” says Jakob Egholt Søgaard.
You can read more about this in an article by Jakob Egholt Søgaard in Altinget here and in Børsen here