Austrian Parcel Tax Plan Draws Sharp Opposition from Trade, Businesses

Trade Warns Against a Divided Industry

Smuk stressed that almost no company operates exclusively through one channel. “Vom kleinen Fachgeschäft bis zum mittelständischen Handelsbetrieb gehören Webshop und digitale Präsenz längst zum unternehmerischen Alltag,” he added.

The Austrian Court of Audit had already voiced skepticism the previous week, warning that the offsetting effect on the VAT cut could only be achieved partially, creating a risk of higher federal debt. It also noted the law would generate new recording, reporting and payment obligations for mail-order retailers, burden private households, and create high administrative and control costs for the tax administration.

Handelsverband managing director Rainer Will stated: “Die volkswirtschaftlichen Schäden stehen in keinem Verhältnis zu den erwarteten Mehreinnahmen des Staates.”

Economic Impact: Job Losses and Shrinking GDP

An economic study commissioned by Otto Austria from the Gesellschaft für Angewandte Wirtschaftsforschung (GAW) found that the associated loss of purchasing power would lead to a decline in gross regional product of up to €299 million per year. Gross value added could fall by up to €238 million, with potential job losses of up to 1,900 full-time equivalents.

Otto Austria CEO Harald Gutschi announced the company will take legal action, saying he is “verärgert ohne Ende und sprachlos von der Politik.” The company commissioned a legal opinion that called the draft “mehrfach verfassungs- und unionsrechtswidrig.”

The Austrian Chamber of Labour (AK) expressed concern that the tax would ultimately be passed on to customers, hitting small retailers rather than large platforms. The regional committee of the WKO Upper Austria similarly warned that thousands of domestic small businesses selling via marketplaces like Amazon or eBay would be affected.

Mixed Support and Political Debate

The Austrian Trade Union Federation (ÖGB) supports the goal of “fair zu besteuern” cheap platforms from third countries but criticized the decision not to limit the tax to shipments from outside the EU. It said it was “jedoch kritisch zu sehen, dass davon Abstand genommen wurde, die Paketsteuer nur auf Sendungen aus Drittstaaten einzuführen.”

By midday on Tuesday, the parliamentary website had recorded 20 institutional submissions and 54 private individual statements on the bill, as the review period was set to close.