Pension deficit from ‘Baby Boomers’ prompts National Council to approve national referendum on VAT rise An ageing population, and funding shortage in the public pension system (OASI), has led to the National Council and Council of States to approve a national referendum for 25 September
January 2023 rate rises to sparkling drinks, hotels and catering VAT The VAT amendments to the fiscal code have been agreed for 1 January 2023 Fizzy drinks reclassified from 9% reduced VAT rate to standard 19% rate. Hotel and similar short-term accommodation raised from 5%
Temporary tax breaks on domestic fuel and basic foodstuffs as inflation continues rise The Bulgarian government has confirmed a range of emergency VAT rate cuts and rollovers of existing temporary cuts: An extension of the temporary cut to 9% for domestic energy and hearting until
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.
Third extension of gas VAT cuts until 30 September 2022 as inflation hits 8% in June 2022 Italy has extended for the third time the temporary cut in Value Added Tax rate on domestic and industrial use gas until 30 September 2022. Italian inflation has
9.7% June inflation prompts 3-month extension of electricity, gas and heating VAT rate cut to 31 December 2022 As Belgian energy inflation hit 56% in June, the temporary cut in heating VAT rate was extended a further 3 months until the end of the year.
Eurozone energy inflation 39% May 2022; temporary VAT subsidies for domestic power, foods and other basics A fast-growing queue of European countries are emerging to cut their already reduced VAT rates on domestic energy, petrol and foods. Eurozone headline inflation hit 8.1% in May, up from
Domestic electricity rate to be cut from 10% to 5% as inflation hits 8.7% in May Prime Minister Pedro Sanchez announced in Parliament on 22 June a plan to half the VAT rate on domestic electricity to 5%. It was originally cut from the 21%
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
Fast rising inflation prompts rollover of VAT cut for domestic energy Cypriot annual inflation hit 8.6% in April 2022, up from 7.1% in March. This is the highest rate in over forty years. This inflation burst has prompted the government to extend the reduction of
