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Ministerial austerity program: Government implements tax reform

Ministerial austerity program: Government implements tax reform

VIENNA. Volume of relief should amount to 2022 instead of 4.5 billion euros 6.5 billion euros.

Ministerial austerity program: Government implements tax reform

Tomorrow, the quartet Löger / Kurz / Strache / Fuchs wants to present the details of their tax reform. Image: APA

Chancellor Sebastian Kurz (vice president) and Deputy Chancellor Heinz-Christian Strache (FP) want to present the details of planned fiscal relief in stages from 2020 to mid-week. Already at the weekend there was an anticipation: the volume of the reform should not offset as indicated previously 4.5 billion euros in 2022, but 6.5 billion euros would be significantly higher.

If we add the family bonus that will be effective this year, the already existing reduction in turnover tax on overnight stays in tourism and the reduction of contributions to unemployment insurance will be € 8.3 billion, according to a document from the government.

Sparbeitrag of Ministries

Clearly more imprecise is, of course, the information when it comes to the question of where this additional scope of relief, of which, for example, at the government meeting earlier in the year, was not questioned. The basis for half of this was launched in the recent Council of Ministers: the decision on unspecified austerity measures "in the system". Now Minister of Finance, Hartwig Löger (VP) is to reduce the ministries in the July budget negotiations another billion as savings.

> Video: Tax reform is getting bigger than planned

Löger spoke on Sunday of a "common sense tax relief." It excludes new debts or hidden counter-financing through new charges or tax increases: the € 6.5 billion that are missing from the budget should be covered exclusively by "savings in the system".

This was met with skepticism at the opposition and at the top of the union. Saving money on the system often means "cuts in health, education and social benefits," said ÖGB president Wolfgang Katzian. The majority of the population then pays the supposed relief for higher or lower costs, for example, in the doctor's education or visit. SP financial spokesman Jan Krainer criticized the "ads little by little and the policy of the headline."

Like Krainer, now club boss Bruno Rossmann wanted to "finally know who will be relieved and who will pay for the funding." As the funding shortfall was already more than two billion euros before the recent increase in volume, it was feared that "there would be deep cuts in the social system." In any case, the details of the counter-financing remain open until the chancellor's return from a trip to China.

Tomorrow, Tuesday, Kurz and Strache, as well as Löger and Secretary of State Hubert Fuchs (FP) will present the reform. As a correction for the first stage, there was a reduction in contributions to social security. Tax deductibility of employee participation also comes (maximum of 3000 euros per worker / year).

However, praise for their own important work this year's coalition year has already been given in advance: "We are solving a central campaign promise and relieving workers, especially those with small to medium incomes," Kurz said. "And no new debt and with a reformed budget," Strache said. (Luc)

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