Price increases in Austria: smoking, cars, and betting among those affected.
Starting from April 1, prices for several services and goods in Austria will rise, following the government's approval of a financial reform package aimed at improving the budget. Here are the main increases:
Increase in taxes on high income: Extension of the 55% tax on income exceeding one million euros until the end of 2029. Cancellation of VAT exemption on solar panels: Starting in April, the tax will be imposed again, leading to additional revenues of 175 million euros. Increase in taxes on betting: Will rise from 2% to 5%, generating estimated revenues of 50 million euros in 2025. Taxing electric cars: They will be taxed similarly to traditional cars, but at lower rates to support environmental goals, generating 65 million euros in 2025.
Increase in tobacco taxes: This increase will lead to a rise in cigarette prices, with the price of a pack potentially reaching 7 euros, generating revenues of up to 100 million euros annually starting in 2026. Imposing additional fees on banks and energy companies: Additional taxes will be applied to banks and energy companies, adding 500 million euros to the budget in 2025. These measures aim to reduce the Austrian budget deficit, but they will burden consumers with rising prices in many sectors.