Austrian Chancellor Nehammer Promises Tax Cuts Ahead of Election

Austrian Chancellor Karl Nehammer plans to cut taxes for both lower-paid workers and some high earners as he seeks re-election with his conservative Austrian People's Party (OVP) next month. He aims to reduce the entry tax rate to 15%, scrap the 48% tax bracket, and make overtime tax-free.

In a strategic move to garner support ahead of the upcoming parliamentary elections, Austrian Chancellor Karl Nehammer has announced a series of tax cuts aimed at benefiting both lower-paid workers and select higher earners. Speaking at a press conference in Vienna, Nehammer, who leads the conservative Austrian People's Party (OVP), detailed his plans to reduce the entry tax rate from 20% to 15% and eliminate the 48% tax bracket.

Nehammer emphasized that the tax relief would specifically aid the 'broad centre' of working individuals in Austria. 'Lower paid workers and pensioners will see the most significant benefits from these tax reductions,' he stated.

Currently, annual incomes of up to 20,818 euros are taxed at 20%, while no tax is levied on incomes up to 12,816 euros. The OVP is trailing the far-right Freedom Party (FPO) by a few percentage points, with the centre-left Social Democrats closely following. The FPO has also promised tax breaks in its recent election manifesto.

(With inputs from agencies.)