A new coalition government in Austria, comprising the ÖVP, SPÖ and NEOS, is set to introduce a series of tax increases, affecting various groups of citizens. A draft, obtained by the Kronen Zeitung, reveals the scope of the planned tax hammer.
Smokers can expect a double whammy, with a 30-cent increase per pack of cigarettes, followed by a potential additional hike in April. Users of heat-not-burn products, in particular, will see a significant increase of 80% in the tax rate, from €180 to €339 per kilogram.
Industry insiders warn that the price surge could lead to a massive shift in consumer behavior, with a potential loss of €16 million in annual sales for tobacco shops, translating to an average loss of €4,000 per shop.
Gambling operators are also in the crosshairs, with the planned gambling tax, initially set for 2026, now expected to take effect from April 1, doubling the tax rate to 5%. This would result in an annual loss of around €100 million for the industry, with market leader Novomatic being particularly affected.
Electric vehicle owners will also feel the pinch, as the exemption from the motor vehicle insurance tax is set to be abolished, resulting in an average annual increase of €400 per vehicle. The government justifies this by stating that the tax should be used to offset the use of public infrastructure and that a special treatment for electric vehicles is no longer necessary.
Furthermore, homeowners with solar panels will see the end of the current value-added tax exemption for small PV systems, with the government expecting to generate an additional €175 million in revenue by 2025, as the 20% tax rate is reinstated.