Coalition Divided

End of the Parcel Tax? Chancellor Stocker Speaks Out

Although all three coalition parties voted in favor of it, the new parcel tax is controversial within the government. Now, Chancellor Christian Stocker (ÖVP) is speaking out on the issue for the first time.(Bild: Krone-Collage/APA/GEORG HOCHMUTH)

On October 1, the federal government introduced a separate tax on package delivery through the Package Tax Act. But calls to repeal the tax are now growing louder. The three-party coalition faces a majortest. Chancellor Christian Stocker has now weighed in on the debate for the first time. 

In a statement to the “Krone,” Stocker emphasized that, given Austria’s already high tax burden, his party is “fundamentally very critical” of new taxes and additional burdens.

Stocker: Package Tax Pursues Two Goals
According to him, theparcel taxpursues two specific goals: “On the one hand, it serves to finance the VAT reduction on basic foodstuffs and thus help curb inflation. On the other hand, it is intended to have a steering effect by curbing the flood of subsidized cheap packages and thereby protecting our domestic businesses and brick-and-mortar retailers.”

We advocate for relief rather than new burdens. That is why we are fundamentally open to alternative financing proposals and willing to engage in dialogue.

Bundeskanzler Christian Stocker (ÖVP) 

Although all three coalition parties voted in favor of it, the new parcel tax is controversial within the government. Now Chancellor Christian Stocker (ÖVP) is speaking out on the issue for the first time.(Bild: Krone-Collage/APA/GEORG HOCHMUTH)

At the same time, he says it is clear to him that the ÖVP stands for relief rather than new burdens. “That is why we are fundamentally open to alternative financing proposals and willing to discuss them,” Stocker emphasizes.

NEOS Wants to Get Rid of the Tax
The NEOSwants to get rid of theparcel tax as soon as possible . Party leader Beate Meinl-Reisinger called the tax a “mess.” Economy Minister Wolfgang Hattmannsdorfer (ÖVP) had also already made his dissatisfaction with the tax clear. 

SPÖ Sees No Room for Maneuver
The federal SPÖ, on the other hand, sees no room for maneuver because the parcel tax offsets the VAT reduction on selected food items. “Both measures were agreed upon by the entire federal government and adopted by the coalition parties in Parliament,” stated the SPÖ parliamentary caucus. According to the SPÖ-led Ministry of Finance, abolishing the parcel tax would result in a shortfall of 280 million euros per year in the budget. The ÖVP-SPÖ-NEOS coalition is thus facing turbulent times in this debate... 

Parcel Tax

• Since October 1, a two-euro parcel tax has been levied on certain parcel deliveries in Austria. Including value-added tax, this amounts to 2.40 euros.
• This generally affects mail-order companies whose domestic sales exceeded 100 million euros in the previous fiscal year—though these companies pass the tax directly on to their customers, which has recently sparked a major outcry.
• The government expects this measure to generate annual revenue of 280 million euros.

FPÖ Campaigns Against Parcel Tax
The FPÖ has been campaigning against the parcel tax for months. On Monday, the Freedom Party’s Economic Association (FW) called for “the immediate repeal of the parcel tax.” Instead of introducing new national taxes, “we need effective customs controls, consistent compliance with European product standards, and fair competitive conditions for all market participants,” according to the Freedom Party’s Economic Association.

How the parcel tax works
Since the beginning of October, mail-order companies with more than 100 million euros in revenue in Austria have been required to pay the tax, which amounts to two euros per package or order. Including value-added tax, the total is 2.40 euros. Fifteen major online retailers and online marketplaces that ship packages to end consumers are affected by the national parcel tax, including Amazon, Temu, and Zalando. Furthermore, according to the Trade Association, approximately 4,000 domestic retailers who sell through online marketplaces such as Amazon or eBay must also pay the parcel tax.