Doubts on effectiveness and pass through to consumers as inflation rockets and government reach of energy and food VAT reductions The Organisation for Economic Cooperation and Development (OECD) has raised doubts on the effectiveness of temporary VAT rate cuts to help consumers during rising inflation.
Inflation hits 18.5% in May 2022 prompts August VAT rate cut proposal The Lithuanian Seimas Parliament is reviewing legislation to temporary cut the VAT rate on foods from 5% to 0%. This would come into effect from 1 August 2022. Following the Russian invasion of
Governments would be better to use revenues for more targeted welfare support The International Monetary Fund last week called for governments to avoid temporary Value Added Tax rate cuts on fuels, electricity or foods as an attempt to reduce the impact of fast-rising inflation. European
59% fuel inflation prompts reduction in VAT calculation Luxembourg enacted a cut in diesel fuel from 16 May 2022 until the end of the year. For certain uses, agricultural and industrial, it will only apply until the end of July 2022. The cut is effected
Narrowing polls push candidates on VAT cut promises as inflation soars past 5% As France goes to the polls today in the first-round of the Presidential elections, far-right opposition candidate, Marine Le Pen, has committed to a VAT rate cut on petrol and diesel from
12.4% inflation prompts cut in fuel VAT rates 30 April 2022 Estonia is the latest country to turn to a temporary Value Added Tax rate cut to help combat spiking prices on the global energy markets. VAT on petrol, diesel, heating oil and gas will
Inflation hits 62% in March prompts more VAT rate cuts On 28 March, the Turkey President, Tayyip Erdogan, announced a cut from 18% to 8% for a range of goods including: bathroom supplies such as soap and detergents, napkins and toilet paper baby nappies. restaurant
7.6% February inflation prompts temporary VAT until end May 2022; electricity VAT cut till Jun 2023 North Macedonia experienced its highest inflation in almost fifteen years. This was up from 6.7% in January. Transport reached 19.4% annual inflation. Other European cuts on VAT on fuel
ISP fuel tax to be cut as VAT reduction under consideration Whilst Portugal still has only the second highest energy inflation rate in the Euro zone at 12% for January 2021, it has still brought forward a cut to the fuel tax, Imposto sobre os
49% inflation prompts VAT cut to domestic heating following cut to basic foodstuffs President Erdogan announced yesterday a cut from 18% standard rate to 8% reduced rate for domestic electricity. Foodstuffs zero-rated announced mid-February. The cut from the reduced rate of 8% to 1% will
