Austria to revise carbon tax to include ‘climate bonus’ for residents

Austria’s government is set to revise its carbon tax in an effort to curb greenhouse gas emissions, including a “climate bonus” for residents, the Associated Press reported. 

Starting on July 1, 2022, Austrians will have to pay 30 euros ($35 USD) per ton of CO2, which will likely be added to consumer bills by companies. The cost will rise up to 55 euros ($64) per ton by 2025, according to the AP. 

Austrian residents will also get an annual reimbursement to help offset the increased costs and encourage climate-friendly decisions around transportation and home heating. The exact amount to be based on where the resident lives, to avoid punishing people in rural areas with few public transportation options. Children are also entitled to half of what their parents earn in their reimbursement.

The initiative also plans to reduce taxes for energy-intensive companies that will be hit hard by the carbon tax, the AP reported. 

Chancellor Sebastian Kurz’s governing coalition also announced tax cuts and reductions in health insurance charges aimed at helping low-and-medium income groups, the AP noted.