“Like Pouring Fuel on Fire”: Experts Slam Next New Tax Timing
Austria is preparing to introduce a new tax on non-recyclable plastic packaging, sparking concerns among retailers who warn it could lead to higher consumer prices and increased inflation.
The proposed measure aims to reduce waste and promote a circular economy by holding producers accountable for plastic use. Currently, Austria pays around €180 million annually to the EU for plastic-related penalties, a cost covered by the national budget.
While environmental groups have welcomed the plan, the Handelsverband (Retail Association) strongly opposes it, arguing that the timing is problematic due to rising global costs driven by ongoing geopolitical tensions.
Rainer Will, head of the Handelsverband, warned that introducing the tax during a period of already high raw material and energy prices would worsen inflation. He stated that the added costs would inevitably be passed on to consumers, potentially increasing prices by up to 10 percent.
The proposal has also raised concerns over its scope, as PET bottles could be included despite their high recyclability under existing deposit systems. Retailers are calling for a delay in the tax’s implementation until market conditions stabilize.