- The government plans to reduce VAT on selected basic foodstuffs to about 5% to help poorer households.
- The VAT reduction will be financed by introducing a levy on non-recyclable plastic and a package levy on shipments from non-EU countries.
- The specific food items affected are not finalized, but milk, eggs, bread, and vegetables are likely included.
- The measures are expected to cost around 400 million euros, with the new levies projected to cover this amount.
- There is criticism that the VAT reduction is a “watering can” approach, benefiting all rather than targeting those in need, but the Trade Association promises to pass on the savings to consumers.
Source: vol.at
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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