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Austria: First Tax Package to Be Presented

Published: January 8, 2014; 16:46 · (FriedlNews)

The Austrian government intends to present the first tax package tomorrow.

Austria: First Tax Package to Be Presented / Picture: © Flickr

During the Council of Ministers Deputy Chancellor and Finance Minister Michael Spindelegger announced that not only the budget for 2014 but also for 2015 will be presented in spring. The latter would have only been due in the fall. Moreover, the Deputy Chancellor called for a fast conduct in regard to Hypo Group Alpe Adria.

The government has agreed upon a number of tax measures in the coalition program including a reform of the group taxation, a new model for the Austrian car registration tax (Normverbrauchsabgabe "NoVA"), the increase of enginerelated insurance tax as well as a re-introduction of a tax on sparkling wine and champagne and changes to the annual tax-free profit allowance for self-employed persons. During the coaltion negotations, the planned tax hikes were estimated to come at around one billion Euros.

Law modifying taxes for the realization of the plans will be forwarded for examination by the Finance Ministry, as announced by Spindelegger. The tax package is expected to be decided by the government at the end of January and approved by the parliament in February. Afterwards, the state budget is on the government’s agenda as it has not been decided on yet because of the the elections for the National Assembley in autumn last year. The provisional budget financing is supposed to be approved at the end of January during the meeting of the National Assembley in order to grant the government more time to complete the regular budget drafts for 2014 and 2015.