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Alarm bells are ringing in the beverage industry and retail sector. The reason: the Austrian government has agreed on a new “plastic tax”, approved during its recent cabinet retreat. A first look at the draft legislation has already sparked criticism.
The government intends to increase levies on plastic waste — and PET bottles would be included.
For producers of water, soft drinks, and other beverages, this means higher costs, which would almost certainly be passed on to consumers.
The revenue from this tax is meant to help finance the planned reduction of VAT on basic food items. It is also intended to create stronger incentives for recycling.
Why is the beverage industry upset?
Manufacturers are anything but pleased.
According to an anonymous industry insider quoted by Krone, the government’s move is a “serious foul”.
Here’s why:
- The beverage industry and retailers have invested millions in developing and implementing the deposit-return system that has been in place since 2025.
- Companies argue they should not be forced to shoulder yet another financial burden.
- They are demanding that PET bottles be exempted from the new plastic tax.
- The insider warns that consumers will ultimately pay the price, whether at supermarkets or petrol stations.
What does this mean for consumers?
If the tax goes ahead as planned, water, soft drinks, and other beverages in PET bottles are likely to become more expensive.
The exact impact will depend on:
- whether PET bottles remain included in the final law
- how much of the cost producers pass on
- whether retailers add additional price increases
The government is looking for ways to fund the VAT reduction on essential foods.
The plastic tax is part of this financing package and aligns with broader EU efforts to reduce plastic waste.
- source: heite.at/picture: pixabay.com
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