The Austrian government has agreed to reduce the value-added tax (VAT) to 4.9% for various essential products, including milk, butter, potatoes, and rice, starting from July 1.

However, meat was not included in the final list, which generated tensions within the government coalition. The approved list includes dairy products, vegetables, fruits, cereals, and other products, most of which are manufactured in Austria. The coalition, consisting of the Austrian People's Party (ÖVP), Social Democrats (SPÖ), and Liberals, expects a deficit of 200 million euros this year, and the average reduction in costs for households will be approximately 100 euros annually. The measure is financed through taxes on non-recyclable plastics and on packages from third countries, aiming to support economic recovery and reduce inflation. The government emphasizes that the measure is fully funded and that it will collaborate with the industry to reduce bureaucracy.