More than 17,000 say NO to the new package tax

The Austrian Retail Association has launched an online petition demanding the immediate abolition of the country's new package tax, calling it "the worst law of the last 25 years." Two weeks after its implementation, the association intensified pressure on the federal government, urging consumers and businesses to join the campaign against the 2.40-euro surcharge on online purchases. The petition was launched one day before a government crisis summit scheduled for Saturday, during which the package tax would be among the topics discussed. According to the finance minister, the Social Democratic Party (SPÖ) continues to support the tax, describing it as compensation for reducing the value-added tax on staple foods. The Retail Association, according to reports, took this step following a complaint filed with the European Commission on October 6. The association argues that the tax artificially increases purchase prices, hinders investments and innovation, and weakens Austria’s commercial position significantly. Rainer Will, managing director of the Retail Association, stated that the tax makes shopping more expensive and deprives businesses of funds for jobs and investments. He added that nearly 3,000 jobs and 360 million euros in economic output are at stake, emphasizing that the federal government must correct this political mistake. Through the petition, the association aims to give a voice to all who reject the Austrian price increase in e-commerce. According to a representative survey conducted by Reppublika Research on behalf of the Retail Association, 70 percent of Austrians oppose the package tax, while 92 percent fear higher final customer prices. No other EU country has successfully implemented a national package tax, with France and Italy having abolished theirs for valid reasons. Rainer Will warned that Austria risks prolonged legal disputes, an EU infringement procedure similar to Hungary, and ultimately political embarrassment, positioning the country as a laughingstock within the EU. The Retail Association clearly demands that the federal government, particularly the SPÖ-led Ministry of Finance, reconsider the tax in light of growing public criticism and substantial economic collateral damage. The association insists that the national package tax must be immediately withdrawn. Meanwhile, the closure of Ardo’s facility in Groß-Enzersdorf has sparked widespread concern. The Belgian frozen vegetable company has decided to proceed with the planned shutdown despite a financial aid package offered by the federal and provincial governments. The decision could soon be felt in grocery stores nationwide. The company presented an initial proposal for a social plan to the works council, estimating that most employees could continue working for six to nine months, with some potentially staying until the end of the year. Final agreement on the social plan has yet to be reached, with the next round of negotiations scheduled for October 23. Ardo emphasized the need to continue constructive dialogue to provide clarity for employees, expressing understanding of their concerns and uncertainties. However, the company maintains that its decision to close the plant remains unchanged. According to Ardo, state assistance would not resolve the structural issues affecting the plant. Despite the company’s stance, opposition to the closure is growing. A petition to save the Marchfeld frozen vegetable production had already collected over 40,000 signatures by Thursday. Supporters hold the federal government accountable, demanding incentives to preserve domestic frozen vegetable production. The works council has issued a solidarity appeal following the announcement of the closure plans. The implications of the planned closure extend beyond the affected employees. Ardo supplies frozen vegetables to companies such as Iglo, and the agricultural sector in Marchfeld is already feeling the impact, particularly in spinach cultivation. Employees are now focusing on the October 23 meeting to further discuss the social plan. The new package tax, introduced on October 1, has led to a ten percent decline in parcel volume since its implementation. According to Amazon, customers in Austria have been combining multiple items into a single order more frequently in the first two weeks. This trend aligns with comments from Margarete Gumprecht, head of the trade division at the Vienna Chamber of Commerce, confirming that customers are bundling orders more often. The package tax applies to large online retailers with annual sales exceeding 100 million euros, including Amazon, Zalando, and Temu, as well as approximately 4,000 local marketplace sellers. The tax generates around 280 million euros annually for the budget, intended to offset the reduction in value-added tax on staple foods and protect the local retail sector from cheap delivery floods. The Retail Association highlighted that the tax lacks proportionality and stands on shaky legal ground, burdening domestic traders, increasing consumer costs, and risking failure in court. Rainer Will expressed frustration and disbelief at what he described as a political blunder.