Greens reject Austrian VAT cut on food citing unfair burden

Vienna, Austria — May 18, 2026 The Austrian Green Party announced it will reject the government’s proposed reduction in value-added tax (VAT) on basic foodstuffs during Thursday’s parliamentary session. Party leader Leonore Gewessler called the measure a flawed solution that fails to address rising costs for average citizens. ## Criticism of VAT Reduction Gewessler argued the proposed VAT cut is structured in a way that ultimately shifts the financial burden back onto consumers. "Wenn dann einmal etwas angegangen werde wie die Mehrwertsteuer-Senkung auf Grundnahrungsmittel, werde es so aufgesetzt, dass es die Menschen letztlich selbst bezahlen müssten," she said. The relief, amounting to just a few cents per purchase, would be quickly negated by ongoing inflation, she added: "Die Entlastung betrage gerade einmal ein paar Cent - 'ein Betrag, der durch die anhaltende Teuerung schon wieder aufgefressen wird'." The Greens also criticized the measure for disproportionately benefiting higher-income households. Gewessler noted that those who can afford organic bread would see greater savings than those forced to buy cheaper products: "Trotzdem profitieren jene mehr, die sich den Bio-Brotlaib leisten könnten, weniger jene, die zu billigen Produkten greifen müssten." ## Government Inactivity on Energy Transition The Greens accused the coalition government of broader inaction, particularly on renewable energy expansion. Gewessler expressed skepticism about reaching a two-thirds majority needed for the Renewable Energy Expansion Acceleration Act (EABG), stating, "Es liegt noch ein weiter Weg vor uns." She cited resistance from several federal governments against new wind power projects: "Gewessler erinnerte daran, dass ein Bundesland nach dem anderen ausgerichtet habe, keine neuen Windkraftwerke aufstellen zu wollen." The party plans to highlight these issues in a short debate on Wednesday or Thursday, focusing on what it sees as the government’s failure to manage both current challenges and long-term energy goals. Gewessler accused the coalition of being "overwhelmed with managing the status quo," warning that such stagnation fuels discontent: "Damit bereite man den Boden für 'die Feinde der Demokratie' auf." ## Additional Policy Failures Beyond the VAT debate, Gewessler criticized other stalled initiatives, including the abandonment of a plastic tax due to opposition from business groups: "Die Plastikabgabe komme nicht, weil sich das alte Denken der Wirtschaftskammer durchgesetzt habe." She also condemned the parcel surcharge for unintended consequences, noting it affects Austrian businesses alongside foreign retailers: "Die Paketabgabe funktioniere längst nicht so wie angekündigt. Denn sie wende sich nicht in erster Linie gegen chinesische Handelsriesen sondern auch an österreichische Anbieter." Meanwhile, FPÖ leader Herbert Kickl welcomed the government’s inertia, with Gewessler quoting his remarks: "FPÖ-Chef Herbert Kickl freue sich über die Untätigkeit der Koalition." The Greens framed the upcoming parliamentary sessions as a critical moment to challenge these trends, though prospects for policy changes remain slim.

Greens to Oppose VAT Reduction on Basic Foodstuffs in Austrian Parliament

Criticism of VAT Reduction

Government Inactivity on Energy Transition

Additional Policy Failures