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Less money by tax cut for food

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In July, the tax on food goes down. Many people hope for a big save. The tax drops from 10 to 4.9 percent. But a new study makes little hope.

The institute OGM checks cash receipts. Over 800 persons send their bills. The result: People save only 57 euros per year. Before, people think about 100 euros.

Only few products become cheaper. This is about 23 percent of buys. The rules for the tax are very hard. Many foods do not belong to it.

One example is flour. Wheat flour is cheaper. Rye flour costs as much as before. Also at bread, differences exist. Is too much fat or sugar inside, the tax stays high.

The finance ministry sees this different. It believes further in a high relief. In total, 400 million euros should be saved. Proofs for this do not exist yet.

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Sources

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