- Austria plans to cut VAT on selected basic food products from 10% to 4.9% starting July 1, 2026.
- The lower house has already passed the draft bill, and approval is expected without major changes.
- The reduced tax rate will cover specific staples such as milk, yogurt, butter, eggs, vegetables, fruit, rice, flour, pasta, bread, and salt.
- The measure is intended to ease grocery costs, support retailers, and help reduce inflation.
- To help fund the cut, Austria plans countermeasures including a plastics tax and fees on parcels imported from outside the EU.
Source: fiscal-requirements.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.
