Austrian ruling parties' outline budget deal includes higher corporate tax
Outline Agreement on Austria's 2027-2028 Budget
VIENNA, April 27 (Reuters) - Austria's three ruling parties have reached an outline agreement on the budget for 2027 and 2028 that includes extending the current bank tax and increasing the corporate tax, the parties' leaders told a joint press conference on Monday evening.
Background: Coalition Government and Economic Goals
The country's first three-party coalition government since World War Two took office more than a year ago, aiming to bring inflation down by more than a point to 2% and tackle a budget deficit that had grown beyond the European Union's limit of 3% of economic output.
Key Budget Measures
Savings and Pension Adjustments
- The parties agreed on savings of roughly 2.5 billion euros ($2.9 billion) in 2027 and slightly more than 5 billion euros over both years.
- Those savings would include increasing state pensions by roughly a quarter of a percentage point less than inflation.
Corporate Tax Increase
- Corporate tax would increase only for earnings above 1 million euros, to 24% from the current 23%
Next Steps
- Details must now be hammered out in time for Finance Minister Martin Marterbauer's budget speech on June 10.
Additional Information
($1 = 0.8532 euros)
(Reporting by Francois Murphy; Editing by Mark Porter and Edward Tobin)
