Stricter rules required for online giant Amazon – Coronavirus Vienna

Trade Association Managing Director Rainer Will, GPA President Barbara Teiber and Alexander Egit, Greenpeace Managing Director Central and Eastern Europe, agree that Amazon cannot be the big winner in the crisis. “Amazon’s market power is now reaching an unhealthy level as politicians cannot sit idly by,” Teiber said at an online press conference Tuesday.

Specifically, the representatives ask for greater taxation of online companies such as Amazon, which do not have commercial premises in Austria. Since, due to the lack of a company headquarters in Austria, it is currently not possible to apply income tax, it could, however, be changed to a fictitious income tax based on sales. Teiber suggests five percent of sales.

However, in the medium term it would be important to introduce permanent digital stores, which would also allow 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 permanent digital establishment would generate around 300 million euros in tax revenue for Austria.

The managing director of the trade association also criticized the high volume of counterfeit products or incorrectly declared products that are shipped through online commerce. The amount of damages for Austria amounts to around 5 billion euros. These packages often come from Asia. This problem can only be solved with stricter customs controls and the removal (across the EU) of the VAT exemption limit of 22 euros. Also, there must be some kind of liability from the platform in the case of fake products, Will said.

There should also be platform responsibility for retailers to comply with the Packaging Ordinance so that Amazon is more responsible for the packaging waste produced by the group. “We demand that disposal costs at Amazon be paid through the responsibility of the platform,” said the managing director of Greenpeace. Furthermore, Egit speaks out against the destruction of returned packages on Amazon. Every year around 1.3 million returned packages are destroyed in Austria.

Egit, Teiber and Will are also calling for better working conditions for Amazon employees. Most of the US group’s employees are temporary workers who could also be fired quickly. In addition, the work of the works councils is impeded. Teiber spoke of an abuse of the temporary worker system by the US company, which the government must stop with stricter controls on labor standards. Furthermore, the allowable proportion of temporary workers in a company should be limited and a permanent position should be possible after approximately one year of work as a temporary worker.

He is in constant contact with politicians due to the necessary measures. The representatives are demanding rapid implementation of the demands, which are not new either. Furthermore, politicians should not excuse themselves that the measures should take place at the EU level. Teiber added that actions must also be taken at the national level.

To help the national trade to recover, Will demands a purchase voucher of 500 euros for people who voluntarily participate in the mass crown tests in Austria. The “Austrian controls” would offer an incentive to go to tests and at the same time give a stronger boost to domestic trade. Due to the crown crisis, the trade association had already demanded “helicopter money” of 500 euros per person in spring and summer in order to stimulate consumption in Austria. However, the proposal at the time was not associated with a crown test.

The director of the trade association is not satisfied so far with the Christmas business. The expected recovery effects have yet to materialize.

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