Austria’s taxes among highest in EU

Austria's taxes among highest in EU
Euro notes. Photo: APA
A new survey by Eurostat, the statistical office of the European Union, shows that Austrians pay one of the highest rates of labour taxation in the EU - at 57.4%, third only to Sweden (58.6%) and the Netherlands (57.5%).

The survey, released by the EU on Monday, shows that out of the 28 countries in the EU area, Austria is among the top three in terms of taxes paid on labour, which is considered to be a major obstacle to economic growth.  Germany is in fourth position behind Austria, with 56.6% for labour taxes.

The greatest source of tax revenue among the 28 states is labour taxes, which constitute just over half of the total tax receipts in 2012 at 51.0%.  This is followed by consumption taxes (28.5%) and taxes on capital (20.8%). 

The four countries with the lowest labour taxes are Bulgaria, Malta, Cyprus and the U.K., all of which have labour tax rates of less than 40%.

Austria's taxes on consumption and capital remain relatively low in the EU, with rates of 27.6% and 15.2% respectively in 2012.

Labour taxes are relatively increasing since the past 10 years, while consumption and capital taxes have been reducing in Austria.

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