Food Tax Reduction Is Likely to Bring Less than Expected
6 Articles
6 Articles
Since July, VAT on certain foodstuffs has been halved. According to the Ministry of Finance, households are supposed to save up to 100 euros each year. However, a new calculation now shows: In practice, consumers save much less money than the Ministry calculates.
OGM opinion polls evaluated prices on the basis of actual purchases: only a quarter of the purchased food is covered by the tax reduction.
OGM analysis based on actual purchases: only quarter of the purchased food is taxed.
The reduced VAT on basic foodstuffs in July may relieve Austrian households much less than intended: An evaluation of the opinion research institute OGM on the basis of real cash slips shows that just under a quarter of the purchased foods benefit from the reduction.
The reduced VAT on basic foodstuffs in July could bring less than originally expected. This suggests an OGM analysis based on actual purchases. Here, only just under a quarter of the purchased food was tax-favored. Thus, the average relief amounts to only 57 euros per year and not up to 100 euros per year. The Ministry of Finance, on the other hand, assumes that the estimated 400 million euros of relief will be maintained.
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