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Austria to Halve VAT on Staple Foods Amid Inflation, Funded by New Plastics Tax

  • Austria will reduce VAT on selected staple foods from 10% to 5% starting 1 July 2026.
  • The measure aims to ease cost-of-living pressures amid persistently high inflation.
  • The VAT cut will be funded by a new non-recyclable plastics tax, planned for October 2026.
  • The initiative reflects political concern over high daily shopping costs for households.

Source: vatcalc.com

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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