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Up to 350 euros more from 2021

Krems. “It’s a bit like a class trip,” joked Green Social Minister Rudi Anschober on the way to the first turquoise-green government meeting in Krems – while VP Chancellor Sebastian Kurz answered the question of whether he was the “class leader” with a smile. The government meeting yesterday and today at the Hotel Steigenberger – which was discreetly secured by a remarkable number of Cobra officials – was in a good mood.

“Three weeks after the swearing in is a good time to retire to a work retreat and to discuss the individual priorities for the next few months,” said Kurz. He and his green Vice Chancellor Werner Kogler set the priorities as “tax cuts and greening”.

Today, Thursday, VP and Greens – the focus is on Finance Minister Gernot Blümel and Environment Minister Leonore Gewessler – want to present the first stage of the two packages:

  • Tax Reform: As of January 1, 2021, the first level of income tax will decrease from 25 to 20%. This should relieve small earners of EUR 60 a year, up to a maximum of EUR 350 a year. After all, 1.4 million people are in this tax group (but all 4.8 million taxpayers benefit). The next two tax levels are to decrease from 35 to 30% and then from 42 to 40% the following year.
  • The flight ticket levy will be standardized to 12 euros per ticket, which makes short-haul flights more expensive.
  • The NoVA (standard consumption tax) should be increased for “stinkers” (new CO2 formula without cap).
  • Diesel: In addition, tank tourism and heavy truck traffic are to be “combated”. Price increases are planned here.
  • The truck toll too should be ecologicalized. This also applies to company car privileges: there should be premiums for CO2-free company cars.
  • Commuter tax. A greening of the commuter package is also planned.

In addition, a precise schedule for an eco-social tax reform is now being drawn up, where everything is discussed “without taboos – including the abolition of the diesel privilege”, said the top of the government.

Isabelle Daniel, Krems

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