The National Council of Austria has adopted with minor changes the Government’s Tax Amendment Act, providing for a number of tax increases. The Tax Amendment Act increases the standard consumption tax, the motor vehicle tax, and the tobacco tax. The legislative tax package also reintroduces a tax on sparkling wine. The measures are designed to generate additional revenues for the budget of about EUR770m (USD1.06bn) in 2014, before providing EUR1.2bn annually from 2015.
Austria’s Tax Amendment Act includes provisions to limit the group tax regime, indefinitely extend the solidarity tax on top earners’ income, and limit the tax break for so-called “golden handshakes.” The legislation also modifies the country’s bank tax, and amends the gambling law. Austria will also continue to push for the introduction of a financial transactions tax (FTT) at European level. , The aim is for an EU FTT that is all encompassing and not merely a stock market sales tax.
