Flat Tax Stalled: Senior Citizens' Association Proposes Allowance as an Alternative

The head of the ÖVP-affiliated Senior Citizens' Association, Ingrid Korosec, has put forward a new proposal for pensioners who want to continue working in retirement. Instead of the flat tax planned by the government, a fixed allowance of 2,000 euros per month could be introduced, she suggested according to several media reports on Monday.

A flat tax of 25 percent as a tax relief for working pensioners is provided for in the government program and originates from the ÖVP. However, the project is currently at a standstill, as there is still no agreement among the governing parties on a draft law.

Pensioners' Association Welcomes Allowance

The Pensioners' Association of Austria welcomed via a statement that the Senior Citizens' Association is now also bringing a tax allowance into play instead of the flat tax it had previously demanded. "This change of course confirms a central demand of the Pensioners' Association, which has been raised for years and was also introduced in the Austrian Senior Citizens' Council two years ago," it said in a statement. This measure is socially targeted, practical, and significantly more gentle on the pension system.

(APA/Red)

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