Austria 2% VAT increase proposal in 2012 |
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30 December 2011 The Austrian coalition government is reported as reviewing a 2% VAT hike from 20% to 22% in 2012. Austria’s reduced VAT rate is currently 10%, and is levied on food, medicine, newspapers and books. It is likely that there would be a rise on this rate first, following France’s recent reduced VAT rate increase. However, it is likely that this would not raise sufficient revenues, and so a rise if the standard Austrian VAT rate may be required. Like most Euro countries, Austria is facing spiralling debt interest costs, as well as a large debt pile from the recent global recession. This problem is compounded by a rapidly ageing population. This represents a threat to countries’ prized credit ratings. Click here if you would like to receive our FREE VAT news updates. |
