Protect the climate? Lower taxes? Issues in the explorations after the federal election. Austria is now apparently one step further: ÖVP and the Greens come to an agreement.
Vienna – In Germany, the ongoing explorations for a new federal government are fiercely contested over tax and climate policy. Austria could already be a step further: The conservative and Greens government around Chancellor Sebastian Kurz (ÖVP) has agreed on an eco-social tax reform for the coming years.
The top government announced on Sunday in Vienna that the population will receive a relief of 18 billion euros by 2025. At the heart of the reform, among other things, CO2 pricing was announced as an incentive for environmentally friendly behavior. The alliance’s prestige project is also intended to bring financial relief for lower and middle income brackets. Every full-time employee should be relieved of at least 300 euros per year.
Bundestag election: climate and tax issue – Austria has already reached an agreement and borrows from Germany
“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. The pricing of CO2 emissions should initially be 30 euros per ton from 2022. By 2025, the price will be increased to 55 euros, based on the German route.
In Germany there has been a CO2 price for transport and heating since the beginning of the year. Currently, 25 euros are due per ton of climate-damaging carbon dioxide (CO2), and the price is to rise gradually to 55 euros by 2025. However, there is also resentment about the reform results in the neighboring country: Scientists and environmental protection organizations had demanded higher prices.
Austria: Kurz und Greens want to offset climate costs – with “regional” bonuses and money for families
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.
In addition, the family bonus is to be increased from the current maximum of 1500 euros to 2000 euros per child. There are plans to reduce health insurance contributions for low incomes. In order to make Austria more attractive as a location, there is a gradual reduction in corporate income tax from 25 percent to 23 percent for companies, according to the announcement. (dpa / fn)