No White Smoke for Tips

In the struggle for a new regulation of levies on tips, the agreement within the three-party coalition is still pending. At the summer ministerial council on Wednesday at the Federal Chancellery, the topic was not on the agenda due to a lack of agreement. However, the government will "very soon" find a common solution, assured Federal Chancellor Christian Stocker (ÖVP) and Vice Chancellor Andreas Babler (SPÖ) in unison before the government meeting.
Flat rates were too high for NEOS
Babler expressed confidence that a common solution, which also includes joint protection for freelance workers, will be found. Within the three-party coalition, it was initially the NEOS who slowed things down. The social partners close to the ÖVP and SPÖ had already agreed on flat rates two weeks ago. However, these were too high for the NEOS. On Wednesday, the party stated that all fundamental questions are considered resolved. The sooner the reform can be presented, "the better for tourism and the hotel industry in the crucial summer season," the NEOS said in a statement. A finalization could occur this week as announced by the Chancellor and Vice Chancellor.
Tips more verifiable
Industry representatives demand that tips be made completely tax-free, while the union warns that employees' pensions would suffer as a result. The debate arose because tips, which are generally subject to social security contributions, are now more verifiable due to increased card payments, leading to sometimes high back payments demanded by the Austrian Health Insurance Fund (ÖGK).
(APA/Red)
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