July 8% inflation prompts proposals to cut VAT rate on range of foods
As inflation hit a 36-year high in July at 8% (June 6.8%), the government is considering a range of temporary VAT rate cuts:
- Bread and pasta cut to zero VAT rate; and
- Meat and fish switched from 10% reduced rate to 5%
This was confirmed by the economic ministry this week. Higher energy prices have pushed prices higher for to 9.6% for non-processed food.