Austria passes new tax revenue-sharing scheme

The Austrian government on Tuesday passed a new tax revenue-sharing scheme between 2017 and 2021.

The scheme stipulates how the revenues totaling some 80 billion euros(85.78 billion U.S. dollars) will be distributed between federal, state, and local governments. Two thirds of the revenue will go to the federal government, one third to be channelled to state and local governments.

The new redistribution package has most notably catered for the additional annual provision of 300 million euros to state and local governments.

Following Tuesday's cabinet session, Finance Minister Hans Joerg Schelling spoke of a significant breakthrough that represents an "entry into a transition."

He said the plan represents the "start and not the end," and that he wishes to hold further talks with state governments and local municipalities concerning further task orientation. Enditem