Lower Austrian chamber backs legal challenge to parcel tax

The Lower Austrian Economic Chamber (WKNÖ) is supporting legal action against a new tax on parcel deliveries by large online retailers, saying it will also affect local businesses, ORF reported.

The tax took effect on Thursday and requires large online retailers to pay 2.40 euros for each parcel delivery. The costs are likely to be passed on to consumers and merchants selling through the platforms.

Nearly 35 million parcels were delivered by the postal service in Lower Austria in 2025. Most are believed to have come from large online retailers, according to the postal service. WKNÖ estimates that between 600 and 1,000 businesses in the state sell products through platforms such as Amazon and Otto.

Alexander Smuk, head of WKNÖ’s group for mail-order, internet and general retail, said the tax would hit local merchants hard. He argued it would not persuade consumers to shop more in physical stores, but could instead drive them to low-cost Asian platforms. The Finance Ministry has described the tax as a measure to support physical retail.

Smuk said separating online and physical retail “artificially” ignored how businesses operate, adding that few companies now sell exclusively through physical shops. He sells products through online marketplaces himself.

Several online retailers, including Otto and Zalando, plan to challenge the tax in court. Amazon also supports obtaining legal clarity, according to the Austrian Press Agency. WKNÖ says it will provide affected businesses with legal assistance and is preparing an internal market complaint.

The Finance Ministry said companies were free to take legal action. Until the issue is resolved, Smuk advised merchants to examine how the large marketplaces adjust their fee structures.