Trade association, union and Greenpeace urge international online trade to take greater responsibility.
Stationary retail was severely affected by the corona crisis this year, while online retail has seen a huge boom. The main beneficiary was not domestic e-commerce, but international platforms like Amazon.
In order to prevent unfair competitive conditions, representatives of the trade association, the GPA union and Greenpeace are again calling on politicians to significantly tighten the rules for Amazon.
Crisis winner
The managing director of the trade association Rainer Will, the GPA chairwoman Barbara Teiber and Alexander Egit, managing director of Greenpeace in Central and Eastern Europe, agree that it cannot be the case that Amazon will become the big winner of the crisis. “The market power of Amazon is now taking on an unhealthy level, as politicians can not stand idly by”, said Teiber at an online press conference on Tuesday.
Specifically, the representatives are calling for higher taxation of online companies such as Amazon, which have no business premises in Austria. Since, due to the lack of a company headquarters in Austria, no profit taxation is currently possible, one could, however, switch to a fictitious profit taxation based on sales. Teiber suggests five percent of sales.
In the medium term, however, it would be important to introduce digital permanent establishments, which would also enable companies that are only present online in Austria to be taxed, says Will. However, it will take some time to shape it. According to calculations by the University of Vienna, the introduction of a digital permanent establishment would generate around EUR 300 million in tax revenue for Austria.
The managing director of the trade association also criticized the high volume of fake products or incorrectly declared products that are sent via online retail. The amount of damage for Austria amounts to around 5 billion euros. Such packages often come from Asia. This problem can only be solved with stronger customs controls and the (EU-wide) abolition of the VAT exemption limit of 22 euros. In addition, there must be some form of platform liability in the case of fake products, said Will.
Packaging waste
There must also be platform liability for retailers to comply with the Packaging Ordinance, in order to make Amazon more responsible for the packaging waste produced by the group. “We demand that the disposal costs at Amazon are to be paid through platform liability,” said the Greenpeace managing director.
Furthermore, Egit speaks out against the destruction of returned parcels at Amazon. Around 1.3 million returned parcels are destroyed in Austria every year.
working conditions
Egit, Teiber and Will are also calling for better working conditions for Amazon employees. The majority of the employees at the US group are temporary workers who could also be dismissed quickly. In addition, works council work is prevented.
Teiber spoke of an abuse of the temporary worker system by the US company, which the government must stop with stronger controls of labor standards. In addition, the permissible proportion of temporary workers in a company should be limited and a permanent position should be made possible after about a year of work as a temporary worker.
Measures in Austria
You are in constant contact with politicians because of the measures required. The representatives demand a quick implementation of the demands, which would not be new either. Politicians should also not excuse themselves that the measures should take place at EU level. Teiber added that action must also be taken at the national level.
In order to continue to help the domestic trade on its feet, Will is demanding a shopping voucher of 500 euros for people who voluntarily take part in the corona mass tests in Austria. The “Austria checks” would offer an incentive to go to the tests and at the same time give domestic trade a stronger boost. Due to the corona crisis, the trade association had already demanded “helicopter money” of 500 euros per person in the spring and summer in order to stimulate consumption in Austria. However, the proposal at the time was not associated with a corona test.
The managing director of the trade association is not satisfied with the previous Christmas business. The hoped-for catch-up effects have not yet materialized.
