The high fuel and gas prices and the general price increases are to be cushioned in part by the relief measures presented on Sunday by Finance Minister Magnus Brunner (ÖVP) and Energy Minister Leonore Gewessler (Greens).
According to the government, the package will have a relief effect of more than two billion euros. Together with the previously decided measures amounting to 1.7 billion euros, the support is ten times higher than in Germany. The biggest chunk of the package concerns a reduction in natural gas and electricity taxes by around 90 percent (900 million euros). Like most measures, this is initially limited to June 30, 2023.
- ZIB 1: DThe government has presented a two billion euro relief package for private households and companies.
According to the government, the second largest item at 400 million euros is a 50 percent increase in the commuter allowance and a quadrupling of the commuter euro by June 30, 2023. Those who do not pay taxes will receive 100 “negative taxable” euros as compensation. This brings a family with a commuter from the Mühlviertel (commuting distance 50 km) an additional relief of around 900 euros (until June 30th, 2023), the government calculates a relief example.
Other areas in the package: price reductions and expansion of public transport (150 million euros), relief for SMEs with high fuel consumption (120), support for companies to switch to alternative forms of drive (120) and 250 million euros to support investments in photovoltaics and wind power. To ensure that companies do not lose their liquidity due to high energy prices, advance payments of income and corporation tax can be reduced.
- ZIB 1: ZIB head of domestic policy, Hans Bürger, analyzes the relief package.
“Don’t make money from the crisis”
The two packages of measures are not financed by new debt, but by additional government revenue (among other things from mineral oil and energy taxes, but also due to higher inflation via value added tax). “The state must not make money from the crisis,” said Brunner, meaning that the additional income should be returned to the population. Actual energy prices, inflation and growth data will only show in retrospect whether this will succeed.
Criticism of the relief package came from the opposition, environmental groups, the Chamber of Commerce, the Federation of Industry and Agriculture, who felt that their interests were not being adequately taken into account. For example, for ÖGB boss Wolfgang Katzian, the measures are “too tentative” and “very vague” in relation to public transport. He asked to be involved in further negotiations.
In Upper Austria, state politics welcomed the package. Both Governor Thomas Stelzer and Economics Minister Markus Achleitner expressed their satisfaction, especially because the many commuters and energy-intensive companies would be significantly relieved. In Upper Austria, the heating cost subsidy will also be increased by 15 percent to 175 euros.
How do others do it?
The French government is particularly sensitive to the effects of energy price increases (yellow vest protests). She responded promptly with a discount of 15 cents per liter of fuel, which must be granted when paying. She has limited the rise in electricity prices to four percent. Other measures: energy cheques, inflation compensation, increase in mileage allowance.
Italy lowered or eliminated taxes on gas and electricity and cashed in on the extra profit of energy companies.
Belgium and the Netherlands also used the control lever – in Belgium this saves ten euros per 60-euro filling of the tank.
In Poland five million low-income households are to receive inflationary support, and VAT on gas has been abolished. Fuel prices are capped in Hungary and Slovenia.
Source: Nachrichten
