Austria lowers VAT on staple foods to 4.9% starting July

From 1 July 2026 Austria will reduce the value‑added tax on basic food items such as milk, bread, fruit and vegetables from 10 % to 4.9 %. The measure, presented in the ORF‑economics programme “Eco”, is intended to make everyday groceries cheaper and to ease the budget pressure on low‑income households. The government estimates the cut will cost roughly €400 million per year. Business groups have criticised the rollout as overly bureaucratic and hastily prepared, and it remains unclear whether the savings will be passed on at the supermarket checkout.

The same broadcast also examined soaring land prices that are making home‑building unaffordable in parts of Austria and discussed a ten‑year anniversary review of the United Kingdom’s Brexit referendum, reflecting on its long‑term political and economic impact.