The Swedish government decided to cut the VAT on food to strengthen all Swedish households’ purchasing power, in response to the recent years’ high inflation on food items. This thesis investigates the government’s reasoning for the temporary VAT-cut on food, focusing on the distribution effect and cost effectiveness. The empirical material used in the thesis consists of other studies that have research on temporary or permanent VAT-cuts, and it is presented through a literature review. The qualitative text analysis evaluates the government’s approach against the theories optimal taxation, median voter theorem and against the empirical material. The findings suggest that the government has succeeded in strengthening all Swedish households’ purchasing power. But it also shows that this fiscal measure isn’t well-targeted, and that there are other fiscal measures that are more well-targeted. This fiscal measure also shows signs that the government cut the VAT on food to attract votes in the upcoming election, specifically given the timing of its implementation.Nyckelord: Mervärdesskatt,