Posted: Posted October 3, 2021 / 1:41 pm CDT / Has been updated: October 3, 2021 / 1:41 pm CDT

Berlin (AP) —The Austrian government has announced plans to reform the country’s tax system to curb greenhouse gas emissions.

The government announced on Sunday that it would introduce a new carbon tax from 1 July 2022 and return the money to residents in the form of a “climate bonus.”

Starting next year, Austrians will find that they will have to pay € 30 per ton of CO2. This is a cost that businesses are likely to add to consumer invoices. This will rise to 55 euros ($ 64) per ton in 2025.

The government expects to generate about € 5 billion ($ 5.8 billion) from taxes by 2025.

Each Austrian resident will be refunded annually, with the exact amount determined by their place of residence so that residents in rural areas without public transport will not lose. Children are entitled to half the amount of their parents. Therefore, a family of two adults and two children in Vienna can be expected to receive, for example, 300 euros ($ 358).

The goal is to encourage people to choose forms of climate-friendly transportation and heating by making carbon-intensive choices more expensive without increasing the overall tax burden.

The coalition of Sebastian Kurz’s conservative People’s Party and environmentalist Greens also cuts income taxes, cuts some health insurance premiums, and others that benefit primarily families and low- and middle-income earners. Announced measures.

We are also planning tax cuts for businesses, especially those in energy-intensive industries that are most likely to be affected by the new carbon tax.

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