BERLIN (AP) – The Austrian government has announced its intention to reform the country’s tax system with the aim of reducing greenhouse gas emissions.
The government announced on Sunday that it would introduce a new carbon tax as of July 1, 2022 and that it would return this money to residents in the form of a “climate bonus”.
From next year, Austrians will have to pay 30 euros (almost $ 35) per tonne of CO2, a cost that is likely to be added to consumer bills by businesses. This will increase to 55 euros ($ 64) per tonne in 2025.
The government plans to generate around 5 billion euros ($ 5.8 billion) from the tax by 2025.
Each resident in Austria will receive an annual reimbursement, with the exact amount determined by their place of residence to ensure that those in rural areas without good public transport do not lose out. Children are entitled to half of their parents’ amount. So a family of two adults and two children in Vienna could expect to receive 300 euros ($ 358) for example.
Political cartoons about world leaders
The aim is to encourage citizens to opt for climate-friendly modes of transport and heating by making carbon-intensive choices more expensive, without increasing the overall tax burden.
The ruling People’s Conservative Party coalition of Chancellor Sebastian Kurz and Green environmentalists also announced income tax cuts, cuts in some health insurance charges and other measures that mainly benefit families and groups. low and middle income.
It also plans to cut taxes on businesses, especially those in energy-intensive industries that will be hardest hit by the new carbon tax.
Follow all of AP’s stories on climate change issues at https://apnews.com/hub/Climate-change
Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.