Austria: eco-social tax reform and climate ticket presented – politics
On Sunday afternoon, while the Austrians were still enjoying the warm autumn sun, the turquoise-green federal government presented the result of months of detailed work in the Chancellery in Vienna with some haste, but also with noticeable satisfaction. It is the implementation of a promise made in the coalition agreement: a comprehensive eco-social tax reform. Up until the last minute, the Greens and the ÖVP had argued about details, but in the end both sides referred to the signaling effect of the reform for combating climate change, while at the same time lower and middle incomes would be relieved. Environmentally friendly behavior is becoming better, environmentally harmful behavior is becoming more expensive.
Chancellor Sebastian Kurz promised a total tax relief of 18 billion by 2025, while the Green Vice Chancellor Werner Kogler promised more “truthfulness and justice”, a big wheel will be turned here. Specifically, a CO₂ price per ton of 30 euros is to be introduced from July 2022, as is also charged in Germany; it is to increase gradually and lead to emissions trading. The Greens had demanded a higher CO₂ price in order to reduce the ecological control effect in the short term, but the ÖVP refused, referring to the high gas price and high inflation. In their initial reactions, experts described the targeted CO₂ price as too low.
Austria is lagging behind other EU countries, said the environment minister
To compensate for rising energy prices, there should be a regional climate bonus, which is paid out at a flat rate and is based on whether people in urban areas with good public services or in the countryside and are more dependent on the car. Kurz and Kogler pointed out that although many points are being orientated towards their German neighbors, they are breaking new ground with a climate bonus for citizens.
Environment Minister Leonore Gewessler from the Greens praised her own party as well as her government partner for the fact that the nuns had stopped years of political games – and that Austria was making progress on the path to climate neutrality. But she also admits that Austria is lagging behind other European states in this regard; There are only a few countries in the EU that do not levy a CO₂ price. At least, according to Gewessler, “everyone is taking along” the reform.
The second income bracket is to be reduced from 35 to 30 percent by mid-2022 and the third income bracket from 42 to 40 percent by mid-2023. Those who benefit from this must earn more than 1,800 euros gross per month. Health insurance contributions are also reduced for low incomes. The family bonus will be increased, the corporate income tax will decrease. More money is to be invested in multi-storey residential construction in order to limit urban sprawl, and low-income households are to be supported in energy renovation. Labor Minister Martin Kocher (ÖVP) pointed out that the ancillary wage costs in Austria at 47.3 percent have so far been relatively high; the tax burden will now drop to 46.2 percent with the reform.
For the time being, the Greens could not prevail with the abolition of tax breaks for diesel engines or the commuter allowance. Climate neutrality cannot be achieved in one step, according to Gewessler; it should be achieved in Austria by 2040.
When running on the new network map, the website collapsed
For the environment minister, whose house had been involved in the eco-social tax reform, it was the second press conference within a week at which she was able to present a success. A few days ago she announced the introduction of a long-discussed climate ticket for the national holiday on October 26th. In addition to the coalition’s biggest project, the reform presented on Sunday, the climate ticket is also considered a core project of the Turkish-Green coalition: The slogan “Welcome to the mobility of the future” is now being used to advertise: Now everyone can “all regular transport (public and private rail transport , City transport and transport associations) in a certain area: regional, supraregional and nationwide “.
Gewessler praised the climate ticket as “a revolution for public transport. The people in this country have waited long enough for it. Public transport has never been so easy and so cheap”. The model, which is also available in Switzerland as a general subscription – albeit much more expensive – could also be used as a model for a possible traffic light coalition in Germany. It costs 1095 euros for the whole year and the whole country, and only 949 euros for early bookers. Tickets for individual federal states also vary from 365 euros per year in Vienna to 695 euros in Upper Austria. In any case, the run on the network map was so great at the beginning that the website collapsed.
Experts criticize the annual climate ticket as being too cheap; the state and ultimately the taxpayer could be left with high costs. In addition, it is not only the price that is important for switching from the car to public transport, but above all a good and comprehensive range of services.