0
0
Shoppers in Austria may notice a pleasant surprise on their next receipt. The federal government has announced a targeted reduction of value‑added tax (VAT) on a range of essential food items, aiming to ease pressure on household budgets.
During an interview on ORF’s Pressestunde on Sunday, Vice Chancellor Andreas Babler (SPÖ) confirmed which products will benefit from the new reduced tax rate. The measure focuses on staple foods and locally produced agricultural goods—items that form the backbone of many Austrian households’ daily meals.
The newly introduced VAT rate will be 4.9 percent, less than half the standard rate applied to most other food products. According to the government, the goal is to make basic nutrition more affordable while supporting domestic producers.
Which Foods Will Become Cheaper?
The reduced VAT applies to a broad selection of everyday essentials, including:
- Bread and baked goods
- Milk, butter, and eggs
- Onions and garlic
- Lettuce and leafy greens
- Cucumbers and tomatoes
- Potatoes
- Apples, pears, and various stone fruits such as apricots
- Rice
The list reflects a strong emphasis on Austrian-grown fruits and vegetables, reinforcing the government’s intention to support local agriculture while providing relief to consumers.
Budget and Implementation
The initiative, developed during the recent government retreat, is backed by a €400 million budget. Officials expect the measure to translate into noticeable price reductions at supermarkets and local markets once it takes effect.
While retailers will ultimately determine the exact price adjustments, the government stresses that the tax cut is designed to benefit consumers directly—especially families and individuals facing rising living costs.
- hector pascua with reports from APA/picture: Image by Squirrel_photos from Pixabay
