This has enabled companies in many industries to make huge profits. The government is going one better and reducing the taxation of these profits in the form of the KÖSt reduction. This must be withdrawn immediately
AK President Andreas Stangl
Linz (OTS) – In Austria, the imbalance in the tax system is still particularly high. Employees and consumers pay almost 80 percent of all taxes. Only 1.4 percent comes from assets. This means that Austria is only in fifth-to-last place in a comparison of the 38 OECD member states. Companies also contribute particularly little in Austria compared to other countries. For this reason, AK President Andreas Stangl is once again calling for a fairer tax structure and the reversal of the reduction in corporate tax (KÖSt). Because of the reduction, the state loses more than 1.1 billion euros per year.
From the AK’s point of view, taxes and duties in Austria are unfair. Because 54.6 percent comes from wage taxes, 22.2 percent from taxes on consumption and 6.4 percent from other taxes that cannot be assigned. Taxes on profits and capital gains contribute only 15.5 percent, and taxes on assets only account for 1.4 percent. Only 7.9 percent of Austria’s total tax revenue comes from corporate profit taxes. The average of the 38 OECD countries is significantly higher at 11.8 percent.
Huge profits at the expense of the general public
It is strange that companies received massive amounts of tax money during the Corona pandemic. Now that these record profits are accruing, they are receiving additional tax benefits. Furthermore, AK President Andreas Stangl criticizes the federal government for failing to intervene effectively in the development of prices: “This has enabled companies in many industries to make huge profits. The government is going one better and reducing the taxation of these profits in the form of the KÖSt reduction. This must be withdrawn immediately
“, he says. Another point of criticism: Two thirds of the reduction in the KÖSt falls on only one percent of the companies subject to the KÖSt – namely the ones with the highest profits.
In 2022, the KÖSt rate was still 25 percent and brought the state revenue of 14.2 billion euros. Due to the KÖSt reduction to 24 percent in 2023, the state lost more than 568 million euros last year. Due to the further decrease to 23 percent on January 1, 2024, the state will lose more than 1.1 billion euros per year. Furthermore, studies show that lower corporate taxes have little positive effect on employment, growth and investment. The planned measure also undermines international efforts to reduce tax competition between states.
Questions & Contact:
Chamber of Labor Upper Austria – Communication
Mag. Dominik Bittendorfer
+43 (0)664-82 37 978
dominik.bittendorfer@akooe.at
ooe.arbeiterkammer.at