Hidden costs coming: A fee of 2 euros per package to fund the tax reform plan
The government has announced a controversial new €2 parcel tax aimed at financing a planned reduction in value-added tax on basic food products. The move is expected to generate significant revenue from online shopping deliveries.
The VAT on essential food items will be reduced from 10% to 4.9% starting July 1. However, this tax cut will create a budget shortfall of around €200 million in the second half of the year and approximately €400 million in 2027.
To cover the loss, the government has decided against introducing a previously discussed plastic tax due to strong opposition from businesses and trade groups. Instead, officials have outlined a four-part financing plan, with the parcel levy as the largest contributor.
The new €2 fee per parcel will begin on October 1 and is expected to bring in around €280 million annually. It will apply mainly to large online retailers with yearly taxable parcel volumes exceeding €100 million in the country. The government argues that international e-commerce companies benefit from national infrastructure without making sufficient financial contributions.
In addition to the parcel tax, the plan includes stricter anti-fraud measures. Individuals moving abroad with undeclared assets above €100,000 will face new reporting requirements, expected to generate €15 million annually. Authorities will also expand access to account registry data to improve tax enforcement and recover an estimated €13 million.
A previously discussed increase in the luxury-related tax threshold for company car deductions will not go ahead, meaning the state will forgo additional revenue. A final, more flexible funding measure remains under review as part of the broader budget process.