Tax Trends in European Countries – Consumption Taxes Reforms

Many countries reduced excise duties and value-added taxes on energy and food products temporarily to support prices and mitigate the impact of rising energy prices and inflation.
However, the effectiveness of reduced VAT rates in achieving policy goals is questionable.
Most European countries have already ended their temporary reductions, with Belgium being the only country to permanently reduce VAT on gas and electricity.
Some countries extended reduced rates for restaurants, catering, and cultural activities, while others lowered VAT rates for specific goods such as zero-emissions cars, feminine hygiene products, and children’s hygiene products.
Luxembourg and Estonia also implemented VAT rate reductions to encourage consumption.

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