Austrian government announces 500 million euros “pub package” to boost economy

The Austrian government announced Monday a “pub package” of 500 million euros (541 million U.S. dollars) to boost consumption and ease the tax burden on bar and restaurant owners.

As planned, the catering business can reopen on Friday with the low number of new infections as a good basis, said Chancellor Sebastian Kurz at a press conference on Monday, announcing a “pub package” as part of the existing aid fund of 38 billion euros (41 billion U.S. dollars).

“Gastronomy is part of the Austrian soul and part of the Austrian identity,” said Kurz, calling on the public to “consume” and “support the regional economy”.

The package is all about relief, said Tourism Minister Elisabeth Koestinger who presented the details of the plan at the press conference.

Among other things, starting from July 1, the sales tax (VAT) for non-alcoholic drinks will be reduced to the minimum rate of 10 percent, the sparkling wine tax will be abolished, the tax flat rate will be increased from 255,000 euros (276,000 U.S. dollars) to 400,000 euros (433,000 U.S. dollars) for bars and restaurants, according to the minister.