Boosting Growth : Austria targets €5b in tax relief

VIENNA: Austria aims to put together a tax relief package worth at least €5 billion ($6.3 billion) next year, which could promote growth in a sluggish economy without boosting deficits and debt, officials said on Saturday. The Social Democrats (SPO) and their conservative People’s Party (OVP) coalition partners agreed on hitting that sum in talks due to wrap up by early 2015, but put off exact details on income tax cuts amid differences over how to finance them.  Austria’s budget deficit is set to rise to 2.7% of gross domestic product and debt to 80% of GDP this year due to costs of winding down nationalised bank Hypo Alpe Adria. The coalition partners also agreed to exert more control over state holding company OIAG – which manages stakes in companies such as OMV, Telekom Austria and Austrian Post – by directly naming OIAG supervisory board members.

Published in The Express Tribune, September 28^th, 2014.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.