Austrian coalition overhauls tax system, units CO2 pricing

31

VIENNA, Oct 3 (Reuters) – Austria’s governing coalition clinched a tax overhaul deal on Sunday that mixes a brand new carbon pricing scheme with tax cuts for people and corporations, officers mentioned.

The accord between Chancellor Sebastian Kurz’s conservatives and the ecological Greens features a new system to tax carbon output not already coated by the European emissions buying and selling scheme.

It set a value of 30 euros per tonne of carbon dioxide (CO2) from 2022, rising to 55 euros in 2025.

Corporate tax charges will steadily fall to 23% from 25% now, whereas earnings tax charges for individuals in two earnings brackets additionally drop. Family “bonus” allowances rise to 2,000 euros per youngster from mid-2022 from 1,500.

The cuts will present round 18 billion euros ($20.9 billion) in tax aid by 2025, officers mentioned.

($1 = 0.8625 euros)

Reporting by Michael Shields; Editing by Emelia Sithole-Matarise

Austrian Chancellor Sebastian Kurz arrives for a European People's Party (EPP) meeting in Berlin, Germany, September 9, 2021. REUTERS/Michele Tantussi/File Photo