Value added tax falls

Stocker sees “no scattergun approach”

Chancellor Christian Stocker on Wednesday evening on ORF's "ZiB 2"(Bild: Screenshot ORF)

On Wednesday, the federal government announced a reduction in VAT on selected staple foods with a healthy dose of optimism. Experts see this as a drop in the ocean – but Chancellor Christian Stocker (ÖVP) vehemently defended the measure. 

Shortly after the announcement, it was reported that only one-third of food prices could be reduced. The costly project is to be financed by a levy on non-recyclable plastic – another controversial strategy whose actual outcome is still uncertain. 

"No scattergun approach"
On Wednesday evening, Chancellor Stocker emphasized on ORF's "Zeit im Bild 2" that the goal was to achieve inflation of two percent – and that within this year: "The year 2026 should be a year of recovery." The VAT reduction is by no means a "scattergun measure," he said, adding that it is about the Austrian shopping basket and that further measures have been taken with the reduction in electricity prices: "When you add it all up, it's not so little."

Is the two percent inflation target "too ambitious"? Stocker emphasized that it is in line with the "EU average": "Forecasts change, but two percent is a target we would like to achieve." 

Abolition of bracket creep remains in place
Stocker did not want to comment in detail on the billions missing from the budget, but emphasized that they had already proven that they "could consolidate." Reversing the abolition of bracket creep was not an option; they wanted to ease the burden on the people. New taxes were also not currently planned. 

When asked about an ÖVP post that addressed Austrians' concerns about living with Muslims, Stocker was unimpressed: "Quoting from a study cannot be a mistake. And I think it is dangerous to close our eyes to reality and developments in political Islam." 

"Not satisfied" with poll numbers
Stocker is certainly "not satisfied" with the federal government's problematic poll ratings, but he said the focus should be on substantive debates in a "difficult year": "We stand for recovery and progress."

As for Stocker's party colleague August Wöginger and his trial for alleged jobbery, the chancellor said that Wöginger continues to enjoy his trust: "In my opinion, August Wöginger has done nothing wrong." Whether Wöginger would remain club chairman even if convicted was a decision for the ÖVP club and Wöginger himself: "Let's wait and see the outcome of the proceedings."