Shopping will become cheaper - what will be implemented soon in the supermarket
The government announced that it has decided in the cabinet to reduce the sales tax on a selected group of essential food items in Austria. This decision comes after preparing the final list of products that will be subject to a reduced tax rate of 4.9 percent. No major surprises were recorded in the final list that will come into effect starting July 1, compared to what was presented by Vice Chancellor Andreas Babler and Finance Minister Markus Marterbauer, both from the SPÖ party.
The basic commodities that will become cheaper include bread, eggs, butter, and milk, in addition to many locally produced vegetables such as tomatoes, cucumbers, peas, and carrots. Apples and pears, along with pasta, rice, and salt, will also benefit from a tax reduction from 10 percent to 4.9 percent.
This measure arose from a decision made during the government meeting in mid-January. After that, the Ministry of Finance presented a list of products that ensures costs remain within the planned budget of about 400 million euros annually. However, the list sparked discussions among the coalition partners ÖVP and NEOS, with the main disagreement being whether to add meat to the list and treat it as a basic necessity deserving of a tax reduction.
According to the published information, meats were not added to the final list, and only minor adjustments were made, without a comprehensive review.
The State Minister for Consumer Protection, Ulrike Königsberger-Ludwig, stated that the tax reduction includes products that everyone regularly purchases in Austria, and that the step aims to alleviate the burden on families and reduce inflation. She described this measure as a sign of confidence and a contribution to enhancing economic recovery.
The system relies on transferring monthly amounts of up to 195 euros to the card, depending on the individual's level of self-reliance, with the possibility of cash withdrawals not exceeding 40 euros per month.