Austria to introduce new carbon tax from mid-2022

Austrian government has announced plans to reform country's tax system in an effort to curb greenhouse gas emissions.

government said Sunday that it will introduce a new carbon tax beginning on July 1, 2022, and will return that money to residents in form of a “climate bonus.”

Starting next year, Austrians will find mselves having to pay 30 euros (almost $35) per ton of CO2 — a cost that's likely to be ded to consumer bills by companies. That will rise to 55 euros ($64) per ton in 2025.

government expects to generate about 5 billion euros ($5.8 billion) from tax by 2025.

Each resident in Austria will get an annual reimbursement, with exact amount determined by where y live to ensure those in rural regions without good public transport don't lose out. Children are entitled to half ir parents' amount — so a family of two ults and two children in Vienna could expect to get 300 euros ($358) for example.

goal is to encourage people to opt for climate-friendly forms of transportation and heating by making carbon-intensive choices more expensive, without ding to overall tax burden.

governing coalition of Chancellor Sebastian Kurz's conservative People's Party and environmentalist Greens also announced income tax cuts, a reduction in some health insurance charges and or measures that mainly benefit families and low-and-medium income groups.

It also plans to reduce taxes for companies, particularly those in energy-intensive industries that will be hit hardest by new carbon tax.