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Austria Submits "Provisional" Budget For Approval

by Ulrika Lomas,, Brussels

10 January 2014

Austrian Vice Chancellor and Finance Minister Michael Spindelegger has finally submitted the Government's provisional budget for 2014 for examination, providing for a raft of tax increases totaling approximately EUR1bn.

Agreed within the framework of the coalition accord between the Social Democrats (SPÖ) and the Austrian People's Party (ÖVP), the provisional budget is due to be approved by the Austrian National Council by the end of the month.

Austria's provisional budget for this year provides for a reform and tightening of the country's group tax regime. In addition, the bill introduces a new model for the standard consumption tax (Normverbrauchsabgabe), and modifies the profit allowance for self-employed workers in Austria.

Furthermore, the draft legislation provides for a rise in the motor vehicle insurance tax, for an increase in the tax levied on alcohol and tobacco, as well as for the reintroduction of a sparkling wine tax in Austria.

Finally, the provisional budget for 2014 abolishes the tax break accorded for so-called "golden handshakes," amends the bank levy, and raises the special contribution to the stability levy to 45 percent.

Commenting, Finance Minister Michael Spindelegger confirmed that the provisional budget is to be supplemented by a "regular" budget for 2014, which will be finalized by the spring. Insisting that a solid budget is the basis for the next few years, Spindelegger concluded by announcing that the medium-term financial plan to 2018, as well as the 2015 Budget, will also be in place by the spring.

The Austrian Government remains committed to achieving a structural "zero deficit" in 2016.

TAGS: Finance | tax | insurance | budget | corporation tax | insurance tax | group taxation | legislation | tax rates | Austria | tax breaks | tax reform

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