Austria’s Chancellor Kurz presents mega tax reform – foreign policy

by time news

Tax hammer in Austria!

Federal Chancellor Sebastian Kurz wants to reduce the tax burden for citizens and companies in his country by 18 billion euros by 2025!

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. Kurz (ÖVP), Vice Chancellor Werner Kogler (Greens) and other top representatives of the government alliance presented the plans today in Vienna.

“This is the biggest relief package in history,” it said. “We have decided to initiate an ecological trend reversal,” said Kurz. The head of government had canceled a planned trip to Spain to finalize the negotiations.

These are the key points in the short program

▶ ︎ For example, corporate income tax is to fall from 25 to 23 percent by 2024.

▶ ︎ In addition, the so-called second income tax bracket is to fall from 35 to 30 percent from July 2022 and the third income tax bracket from 42 to 40 percent from July 2023.

▶ ︎ The family bonus is to increase from 1500 to 2000 euros per child and year from July 1, 2022.

▶ ︎ For more climate protection in the tax system, a CO2– Pricing will be introduced. A price of 30 euros per tonne of carbon dioxide (CO2) from 2022, which will rise to 55 euros by 2025.

▶︎ The government in Vienna wants to compensate for the higher prices for petrol, diesel and heating oil, especially for households in rural areas, with a “regional climate bonus”. 500 million euros are earmarked for an offensive to phase out oil and gas heating.

“We have a very good package,” said Kurz, speaking of a “real system change”.

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 corporate income tax.

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