Reduction of VAT on Food: Debate in Government Continues

Finance Minister Markus Marterbauer (SPÖ) maintained that a reduction in the value-added tax on food would only be feasible with appropriate counter-financing. State Secretary Barbara Eibinger-Miedl (ÖVP) expressed her willingness to examine the issue but emphasized that the impact on the budget must be considered. NEOS chairwoman Beate Meinl-Reisinger expressed skepticism.

Marterbauer: Counter-financing must be secured

Babler recently announced in the media that he wanted to bring the issue of value-added tax reduction to the table in the government. However, the SPÖ leader did not commit to a specific model. Party colleague Marterbauer remained cautious during the doorstep before the Council of Ministers on Wednesday. A halving of the rate on staple foods would cost 800 million euros. This would require tax increases in other areas. This would need to be discussed with the other coalition partners. In any case, it must work out in the budget: "I will continue to be strict about that."

Social Minister Korinna Schumann (SPÖ) is also moving along this line. In the press foyer after the Council of Ministers, she stated it was "clear" that everything was being looked at to see how prices could be lowered. But the budgetary situation is burdensome, and every step must be checked for counter-financing: "The budgetary situation does not allow for things that one would like to do."

While Eibinger-Miedl emphasized that it must be examined whether such a measure would also lead to sustainable development, Meinl-Reisinger was fundamentally skeptical. From her perspective, the government is rightly addressing structural problems and not doing something quickly to achieve a rapid effect. She sees the high prices primarily due to the low competition in retail.

(APA/Red)

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