Italian government proposed to zero VAT on bread and milk

Published 2022년 11월 22일

Tridge summary

The Italian government is contemplating a proposal to either eliminate or significantly reduce VAT on basic food items such as bread, milk, and pasta in response to rising energy and commodity prices that are threatening to impact profitability and increase the cost of essential food items. This proposal is aimed at mitigating the effects of inflation, which has reached over 10% for the first time in 40 years, and addressing the challenges posed by increasing gas and electricity prices. The government has already allocated over 166.9 billion euros from the budget to counter these effects.

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Original content

The Italian government at a meeting on November 21 will consider a proposal to zero (the second option is a two-fold reduction) VAT on a number of basic food products, national media reports. We are talking, in particular, about bread, milk and pasta. In 2022, the cost of gas and electricity in Italy has already increased several times and continues to grow. The price of gasoline has risen by half. Heads of thousands of companies from different sectors of the economy note that this situation puts them on the verge of profitability. A 10-25% increase in prices for basic foodstuffs is recorded. According to preliminary estimates, the country's GDP growth rate will halve, and inflation (which has exceeded the ...

Source: Milknews