Austria's tax revolution: sports betting and electric cars have to pay more!

Austria's tax revolution: sports betting and electric cars have to pay more!

Vienna, Österreich - Austria faces massive increases in fees that come into force from April 1, 2025. In particular, the fee for sports betting is increased by an impressive 150 percent, as "OE24.at" reports. These measures are part of a legislative template that is to be decided in parliament on Friday. With these increases, the Austrian government pursues the goal of consolidating state finances and promoting the energy transition.

As part of the new regulations, the top tax rate of 55 percent will also be extended by 2029, which will affect various areas of life. In addition, the zero tax rate for photovoltaic transactions is canceled, which should increase the costs for purchases and installations of solar modules. The tax for electric vehicles introduced from April 2025 will be calculated according to the engine power and vehicle weight, while taxation for cigarettes and tobacco products is also increasing: the minimum tax rate for cigarettes is increased to 175 euros per 1,000 pieces. According to the German Tobacco Tax Act, tobacco tax in Germany will also continue to be increased, which has been increased several times in recent years. For example, the state generated income of 14.3 billion euros from tobacco tax in 2014.

tax increases in focus

The changes in tobacco tax affect all types of tobacco products. The minimum tax rate in Germany is a mixed form of quantity and value tax that covers diverse tobacco products. Tobacco tax is intended to reduce consumption on the one hand, and on the other hand the state health insurers are to be filled. This profitable tax plays a central role in the federal budget.

The recent tax increases that are sought in Germany and Austria are also an attempt to counteract the increasing consumption of alternative tobacco products and e-cigarettes. Among other things, tobacco tax in Germany has led to the fact that the smoking quota could be severely reduced in young people, which supports health prevention measures. But the critics warn of the negative effects because rising tax burdens often lead to an increase in smuggling and illegal markets. Austria's measures, combined with the continued changes in Germany, represent an important step in tax and health policy, as well as the "Wikipedia" page for tobacco tax.