Austrian Finance Minister Rejects Claims Government Profits From High Fuel Prices
Austria’s Finance Minister ماركوس مارتر باور has rejected claims that the government is making large profits from rising fuel prices, saying the state only receives a small additional amount from value-added tax.
Speaking on the sidelines of a press conference, ماركوس مارتر باور responded to criticism from ألفريد شتيرن, the CEO of OMV (Österreichische Mineralölverwaltung – Austrian oil and gas company), who had called for tax cuts and accused the government of benefiting from the price increases.
According to the minister, the additional income from Mehrwertsteuer (Value Added Tax – VAT) amounts to about 1.3 cents per liter of fuel. He explained that other taxes, such as Mineralölsteuer (mineral oil tax) and CO₂-Steuer (CO₂ tax), are fixed quantity taxes calculated per ton and do not increase when fuel prices rise.
However, ماركوس مارتر باور pointed to data from the Bundeswettbewerbsbehörde (BWB – Federal Competition Authority) suggesting that profit margins for international traders and refineries are significantly higher than the small amount the state receives through VAT.
The government coalition is still discussing whether a VAT reduction is possible, but officials say the country’s budget deficit makes major tax cuts difficult. Authorities are waiting for the results of a joint study by the Bundeswettbewerbsbehörde (BWB) and the Institut für Höhere Studien (IHS – Institute for Advanced Studies), expected next week, before deciding on potential measures.