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Austria Delays Carbon Pricing as Part of Package for Inflation Relief — Orbitax Tax News & Alerts

The Austrian government announced a package of measures on 14 June to provide relief from rising costs due to inflation, including a delay in the introduction of carbon pricing with the new national emissions certificate trading system. As provided by the Eco-Social Tax Reform Act 2022, carbon pricing was to be introduced from 1 July 2022 with an initial price of EUR 30 per metric ton. This will now be delayed to 1 October 2022.

In addition to the carbon pricing delay, the package also includes various measures to support individuals, including an additional regional climate bonus, an increase in the family tax credit from EUR 1,500 to EUR 2,000 with retroactive effect from 1 January 2022, and a one-off payment of EUR 300 for low-income earners and unemployed persons. Further, social benefits payments and individual income tax brackets are to be adjusted for inflation from 2023. Additional details will be published once available.