Austrian Government announced that the sales tax (VAT) on food (from 10%) and beverages (from 20%) is cut to a uniform 5%, Heute writes.
Previously, the government had only decided to ease the burden on soft drinks. It was said at the time that a reduction was not possible due to EU requirements.
Now beer, wine, cocktails and all other alcoholic beverages are also included in the tax cut.
The tax cut is limited to the end of the year and will apply from July 1st. The relief volume is expected to be EUR 700 million.
The temporary reduction of VAT to 5 percent is also planned for newspapers and other periodicals, as well as books and for visiting museums, cinemas or music events.
