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Austria’s Council of Ministers is expected to finalize today the list of food products that will soon benefit from a reduced value-added tax (VAT) rate. According to information reported by APA, only minor adjustments have been made to the product selection originally drafted by Vice Chancellor Andreas Babler and Finance Minister Markus Marterbauer, both of whom represent the SPÖ.
Under the updated plan, a wide range of staple foods will see their VAT rate drop from the current ten percent to 4.9 percent. The reduced rate will apply to bread, eggs, butter, and milk, as well as a variety of locally produced vegetables such as tomatoes, cucumbers, peas, and carrots. Core fruits—including apples and pears—along with pasta and rice are also set to be included.
The tax cut stems from a decision made during the government’s strategy retreat in mid‑January. Shortly afterward, the Ministry of Finance published a preliminary list of eligible products designed to stay within the annual budget limit of 400 million euros. Coalition partners ÖVP and NEOS subsequently requested further discussion, raising questions such as whether meat should be classified as a basic food item. However, APA reports that the final negotiations resulted only in minor adjustments rather than major changes.
The measure is expected to ease financial pressure on households by lowering the cost of everyday essentials, while also supporting domestic agriculture and food production. If you want, I can outline how this change might affect consumer spending or the food industry.
- source: APA/picture: pixabay.com
