After much back and forth

Yogurt instead of cream: food list now finalized

Which foods will actually become cheaper? The "Krone" knows the final list.(Bild: APA/HANS KLAUS TECHT)

Cheaper quinces on the receipt and yogurt instead of whipped cream: The list of foods that will be tax-privileged from July onwards is now complete, according to the "Krone" newspaper – and meat is missing. The government has now also included measures to finance the tax break, which will cost us 200 million this year alone.

SPÖ leader Andreas Babler was never politically responsible for food. However, the red vice-chancellor felt responsible at least once in the ORF press conference, when he rushed ahead with a list of foods that were becoming cheaper, which had not even been "agreed" within the coalition. More than a week later, the "coalition basket" will be finalized on Wednesday, at least in the Council of Ministers. The "Krone" has already received in advance the final, complete, and recently agreed-upon list of product groups for which the sales tax is to be reduced to 4.9% starting in July (see graphic below). Noteworthy: Meat is completely missing despite corresponding demands from the ÖVP, whipped cream has been replaced with yogurt compared to Babler's list, and quinces are now on the cheaper receipt.

(Bild: Krone KREATIV/stock.adobe.com)

State Secretary: "A targeted step!"
"We are reducing the tax on products that are regularly purchased by everyone in Austria. By reducing the value-added tax on these staple foods, we are taking another targeted step toward easing the burden on households and curbing inflation," says Ulrike Königsberger-Ludwig, SPÖ State Secretary for Consumer Protection, with satisfaction.

Ulrike Königsberger-Ludwig (SPÖ)(Bild: Eva Manhart)

Which foods will actually become cheaper? The "Krone" has the final list.(Bild: APA/HANS KLAUS TECHT)

According to the State Secretary, the measure is a "signal of confidence and a contribution to strengthening the economic upturn."

From 2027, this sweetener will cost us 400 million
The government is also satisfied because, after tough negotiations, a model for financing the sweetener has finally been found. This year alone, the tax cut will cost the state around 200 million euros in lost revenue when the measure comes into force in July. From 2027 onwards, this will amount to around 400 million euros per year. According to government calculations, the measure itself will only result in an average relief for private households of just under 100 euros per year.

The tax break is to be financed by a community plastic tax on non-recyclable plastic (expected to generate around 170 million euros per year) and a community parcel tax on third-country parcels to protect brick-and-mortar retailers ("Temu tax"). "This will ensure that the budget consolidation path is maintained and the goal of ending the EU deficit procedure by 2028 is achieved," according to the government. The catch: the plastic tax and the parcel tax will not be enough to offset the costs of the VAT reduction. The Ministry of Finance is therefore already working on further counter-financing models.