• The Austrian parliamentary finance committee approved a VAT reduction on selected basic food items from 10 to 4.9 percent, supported by the coalition parties ÖVP, SPÖ, and NEOS.
  • The reduction applies to milk, yogurt, butter, eggs, vegetables, fruit, rice, flour, pasta, and salt, and will take effect in July.
  • Finance Minister Markus Marterbauer said an average household will save about 100 euros per year, while the state will lose an estimated 1.7 billion euros in tax revenue by 2030.
  • Partial financing will come from a planned package levy, while a plastic levy was withdrawn after criticism.
  • The opposition and Greens criticized the measure: FPÖ believes it will not bring real relief, and Greens warn that wealthier households benefit more and that passing on savings to consumers is uncertain.

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