Tip Debate in the Government Does Not Abate
The topic of tips in hospitality and similar sectors remains a hot issue. While the SPÖ-led Ministry of Social Affairs is working on a nationwide solution regarding taxable funds, the smallest governing party NEOS, through their economic chamber faction UNOS, is lobbying for complete tax exemption, similar to the FPÖ. The UNOS have submitted a parliamentary petition for completely tax-free tips, which can now be signed.
NEOS Petition for Completely Tax-Free Tips
The goal, according to a statement on Wednesday, is: "The National Council should create the legal basis for the tax exemption of tips. The already existing tax exemption for genuine tips (Income Tax Act) should also be adopted for social security contributions (General Social Security Act)," say the Liberals, on whose website the petition can be found. The Economic Network Association also has similar requests to the Ministry of Finance on openpetition.eu.
Criticism from the FPÖ Towards the Ministry of Finance
Recently, the Freedom Party criticized that all their "motions for tax and contribution exemption of tips in the hospitality industry have been rejected, postponed, and shelved." In the hospitality industry, "tax-free tips are an important part of earnings - whether in cash or by card," argued tourism spokesperson Christoph Steiner.
Finance Minister Marterbauer: Caution in the Interest of Workers
Finance Minister Markus Marterbauer (SPÖ) recently pointed out that in the discussion about tips, a distinction must be made between taxes and other contributions. There is a clear difference between a tax exemption, "which is essentially in place," and other contribution exemptions. Because "contributions, even from tips, also entail benefits for employees in return. If you pay less, pensions and unemployment benefits will also be lower," argued the Social Democrat. Caution must be exercised here in the interest of the employees.
(APA/Red)
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