Austrian government announces new eco-social tax reform – EURACTIV.com
After intense negotiations over the weekend, the Green-Conservative coalition reached an agreement on Sunday on an “eco-social” reform of its taxation, consisting of massive tax cuts and a tax reform to encourage the green transition.
Chancellor Sebastian Kurz called the reform âthe biggest tax cutâ in Austrian history. At the same time, Green Vice-Chancellor Werner Kogler underlined that the reform marks an essential “historic moment” in the promotion of an ecological and sustainable economy.
The two parties have agreed to introduce CO2 prices of â¬ 30 per tonne by 2022, which will increase each year and reach â¬ 55 per tonne in 2025. After 2025, a national emissions trading system will be set up and will include all companies that are not already doing so. fall under the EU Emissions Trading System.
The additional tax revenue will be redistributed to the population. Each adult citizen will receive an annual climate bonus between â¬ 100 and â¬ 200, depending on the accessibility of public transport.
The reform will also significantly reduce the tax burden on middle-income households by increasing the family bonus and reducing payroll taxes. âIt’s important that everyone who wants to work gets more,â Kurz said.
Civil society groups and economists have already criticized the reform package for its lack of ambition, saying carbon prices would be too low to have any real impact. They are also concerned that this may not give people enough incentive to adopt more climate neutral behaviors.
(Oliver Noyan | EURACTIV.de)