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Italy considers emergency food VAT cuts

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.

Italy VAT cuts on energy have already been rolled over a number of times since its first introduction at the end of last year. Many other EU states cutting VAT on fuel


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