As soon as the new coalition plans a number of sensitive tax increases with three people, a concept shows. The government is mainly focused on tobacco and bets. Cigarettes will soon be in danger of becoming more expensive again. The engine-related insurance tax for E-cars and VAT on PV systems must also come.
The budget hole is huge, new income is needed. The new coalition of the ÖVP, Spö and Neos apparently wants to lose as little time as possible and plant juicy tax increases in different places. This shows a concept that is presented by the “Kroon”. Intensive negotiations are currently underway. In any case, the smokers must make a major contribution to the plug of the budget hole.
The next price increase should be
In this way the tobacco tax is increased in the design. Bad news for smokers, as reported – they had to increase 30 cents per package on average, now there could be a second price jump at the beginning of April. In particular, it looks like this: the tobacco tax consists of price element and quantity element. While the price element decreases something year after year, the share is increasing to the crowd.
However, the fall in the price element must now be exposed from 32 percent to 31.5 percent. The minimum consumption tax, on the other hand, would increase from 163 to 175 euros. The industry will therefore increase prices by at least 10 cents per package, it can be assumed.
Juicy increase hits smokers
However, the government is planning a real hammer with the tobacco heaters: here the tax has to rise from 180 euros per kilo to 339 euros per kilo, a tax increase with no less than 80 percent! Wolfgang Streißnig, chairman of the toilet, fears in the “Krone” discussion that the market will be broken because prices have to rise.
“Sales above the border will increase enormously,” warns the representative of interest. According to insiders, the toxic substances lack a range of 16 million euros per year due to the increase in border turnovers of tobacco horses, and on average this is 4000 euros per transformer.
The moth costs rise from 2 to 5 percent
The government also focuses on gambling. The government program has already been read from the fact that the breeding costs must rise from the 2nd “to 5 percent” of the 2nd in 2026, now it should go even faster. An increase in the full 5 percent is already planned from 1 April. The industry can be heard that the load increases by 90 to 100 million euros per year, for the rest of the year the coalition expects that more than 50 million euros will be made by the measure.
The reimbursement is calculated on the basis of the sale, which corresponds to the use of gambling providers and is therefore relatively high. The Novomatic Group, which has around 50 percent market share, is most influenced. The Sports Betting Association emphasizes that with such a strong sudden tax increase, countless sports sponsors and cooperation would be endangered. The industry makes the counter -proposal to increase the reimbursement in June to 3.5 percent and from January 2026 to 5 percent, which is economically compatible.
Higher load now also for E-cars
According to the ÖAMTC, around 65 million euros will have to pay owners of electric cars from April if the government plan goes through. In particular, the current exemption from the engine -related insurance tax must be eliminated. On average, the person involved has to bring 400 euros per year. With hybrid cars you have to pay insurance tax for the share of the combustion engine. Official reason for this step: insurance tax is a reimbursement for the use of public space and special financing for electric cars would no longer be really necessary.
Another 20 percent VAT for Huis PV systems
Smaller PV systems on buildings with a peak output of 35 W are more expensive. Already in April the current exemption must be removed with the VAT of 20 percent. Reason here: Due to the lively demand for these solar collectors, the costs for the Budget Cheat, a back -to -normal tax, must return 175 million euros more for the tax authorities this year. If you still want to install a PV system, you probably have to take the earlier financing model via the OEMAG Green Electricity Resolution, which is much more complicated for consumers.
Source: Krone

I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.