The Austrian government has planned a one time payment mechanism to those who are unemployed and jobless to help survive during the crisis situation caused by the pandemic. Measures to be approved at a cabinet meeting next week include payments of 450 euros ($506) to the unemployed and 360 euros per child under 18.
The government also intends to cut the lowest tax bracket from 25% to 20% so as to make a retroactive change from the start of this year.
Austria’s Chancellor Sebastian Kurz, in an interview, said, the coalition government of conservatives and Greens would have more to say about the costs of the measures when the meeting wraps up on Tuesday. He added that value-added tax (VAT) for restaurants and the culture sector will be cut to 5%, to help with the restoration of the economic situation. Since the Austrian economy is predicted to drop by 7.2% this year in the absence of a second wave, the mildest outbreak could cause the value to shrink to 9.2%.
Austria currently has a record of 17,000 confirmed cases of infection, while the death toll is at 877.