Vienna The Austrian government coalition has agreed on a tax reform that combines a new system for pricing carbon dioxide with tax cuts for private individuals and companies.
Federal Chancellor Sebastian Kurz from the conservative ÖVP, Green Vice Chancellor Werner Kogler and other top representatives of the government alliance presented the plans on Sunday in Vienna, with which consumers and companies should be relieved of 18 billion euros by 2025.
“This is the biggest relief package in history,” it said. Corporate income tax is expected to drop from 25 to 23 percent by 2024. In addition, the so-called second income tax bracket is to drop from 35 to 30 percent from July 2022 and the third income tax bracket from 42 to 40 percent from July 2023.
In addition, the family bonus is to increase from 1500 to 2000 euros per child and year from July 1, 2022. “We have a very good package,” said Kurz, speaking of a “real system change”. Accordingly, CO2 pricing is to be introduced in the tax system for more climate protection. A price of 30 euros per tonne of carbon dioxide (CO2) is envisaged from 2022, which will rise to 55 euros by 2025.
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When asked about the counter-financing, Finance Minister Gernot Blümel (ÖVP) said that more growth is being sought, for example through more incentives in location policy. More companies are to settle in Austria, especially through the reduction in corporation tax.
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