The ambitious eco-social tax reform program from the green conservative Austrian coalition is now rolling, three months after the planned date. It is part of a plan to reduce greenhouse gas emissions to net zero by 2040 for the EU country. The tax changes are the second stage of an eco-social reform agenda that started being implemented in 2020. And, while many of the measures are aimed at households, the government is also trying to incentivise businesses to go green. What's very innovative about it is the introduction of a tax on carbon dioxide emissions, aimed at pushing households and industries into a switch to renewable fuels. In October 2021, the government announced that, under this emissions measure, CO₂ would initially be taxed €30/tonne gradually rising to €55 a tonne by 2025. Revenues from the CO₂ tax are intended to flow back to the population, and to the economy in general, with residents receiving a cash dividend depending on their place of residency and their access to public transport. Residents of more rural areas will receive up to €200 a year, while those in urban centres will receive €100, with a bonus for those with children. Another aspect of the tax reform is an investment allowance of up to €350mn to help businesses improve energy efficiency. Companies investing in low-emission buildings and vehicles, meanwhile, can also receive financial support, while money is being made available for the phasing out of oil and gas heating in private homes. Read more about this one-of-a-kind reform of the tax system in Austria: https://www.ft.com/content/8064abc8-47c1-4686-a483-7699410cbb9f