Austria’s Conservative-Green coalition government led by Chancellor Sebastian Kurz has announced a Carbon Tax as part of a package of ‘eco-social’ tax reforms.
The tax on carbon emitting companies will be introduced by mid-2022 and will initially be set at $35 per tonne, rising to $55 per tonne by 2025.
As part of the tax reforms families will receive a ‘climate bonus’ of €100 in cities and €200 in rural areas where reliance on private transport is greater. Companies will also benefit from a reduction of Corporation Tax to 23% from the current level of 25%.
The new tax measures are an outcome of the Green Party led by Werner Kogler joining a coalition government with the Conservative Party (ÖVP) after the 2019 elections.
The reaction from environmental groups in Austria however have been muted.
WWF-Austria called the reforms a “weak compromise” and said the carbon tax policy should be “much more ambitious in order to effectively reduce emissions”.