Press Release 14th September 2022

BILLA and the Vegan Society Austria call for equal tax treatment of cow's milk and plant-based counterparts

Animal milk is considered food and is subject to a VAT rate of 10 %. In many European countries such as Denmark, France or Ireland, plant-based milk is treated as an animal product and is also taxed like food - not so in Austria.

From left to right: Felix Hnat, Chairman of the Vegan Society Austria, and Elke Wilgmann, BILLA Executive Board, advocate for equal tax treatment of cow's milk and its plant-based counterparts.

From left to right: Felix Hnat, Chairman of the Vegan Society Austria, and Elke Wilgmann, BILLA Executive Board, advocate for equal tax treatment of cow's milk and its plant-based counterparts. / Copyright: BILLA / Harson, Reproduction for PR purposes free of charge

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"Milk made from domestic soy or oats is considered a beverage in Austria and, unlike the animal product, is subject to a tax rate of 20%. This is twice as high a tax and therefore puts customers who choose plant-based milk at a clear disadvantage. Together with the Vegan Society Austria, we are therefore calling for equal tax treatment of animal milk and its plant-based counterpart," says Elke Wilgmann, BILLA CEO, adding: "Of course we are prepared to pass on any tax reduction to our customers on a 1:1 basis."

Of course we are prepared to pass on any tax reduction to our customers on a 1:1 basis.

Elke Wilgmann BILLA CEO

Felix Hnat, chairman of the Vegan Society, explains why there is a need for action right now: "You have to consider that the 10% difference means about 20-25 cents per pack or litre. Considering the current inflation, this is enormous. A tax cut would definitely offer relief to customers. At four litres per household per week, that's 50 euros or more per year.

A tax cut would definitely offer relief to customers.

Felix Hnat Chairman Vegan Society Austria

Plant-based offensive at BILLA

According to the BILLA Austria Report*, 28% of 18-29 year-olds hardly eat any meat any more, and 46% of Austrians have consciously reduced their consumption of animal products in recent years, according to a recent survey commissioned by BILLA**. This is also reflected in the demand for plant-based products. "28 years ago, we were already an organic pioneer with Ja! Natürlich (Yes! Of course) we were already an organic pioneer. Now we want to take the lead in plant-based food retailing and offer our customers a wide range of products, know-how and service in plant-based nutrition," explains Elke Wilgmann. Part of the extensive plant-based range at BILLA and BILLA PLUS is the expansion of the purely plant-based range around BILLA's own brand Vegavita. Vegavita currently comprises around 80 products, eleven new products have already been launched this year and around 15 are still in the starting blocks. However, BILLA's plant-based competence goes beyond the product range. This year, the Expert:innenrat "BILLA Good Food Board" was established. For the entire year 2022, it will focus on plant-based nutrition and provide tips and tricks on how to easily integrate it into everyday life.

BILLA PLANZILLA

The latest highlight from the BILLA plant-based world is BILLA PFLANZILLA. A completely new concept store with a purely plant-based assortment and innovative service offers - making it the first of its kind in Austria. The shop is located at Mariahilfer Straße 38-48 in the area of the BILLA PLUS market kitchen and significantly facilitates the shopping of customers who want to buy purely vegetable products. The area of over 200 m2 offers space for more than 2,500 purely vegetable products and new services. Specially trained employees are available to help customers with all questions regarding the BILLA PFLANZILLA product range. The diverse range includes purely plant-based meat, sausage and dairy products, frozen goods, snacks, baked goods and confectionery as well as basic products for plant-based dishes such as pulses, grains, seeds, nuts, fruit and vegetables. But also herbs, sauces, spices, pastes and muse can be found on the shelves. The coherent range is rounded off by drinks that underline the plant-based lifestyle - from grain and nut drinks to fine wines. No vegetarian or hybrid items are offered. Moreover, throughout the store, emphasis is placed on sustainable and reusable materials. The non-food section is also convincing: a shelf full of cookbooks encourages inspiration for plant-based recipes.In addition, various focal points are set, such as cooking & baking, clean & healthy, convenience, snacking or country cuisines.

About the studies:

* The market and opinion research institute marketmind was commissioned by BILLA to survey a total of 3,013 women and men aged between 18 and 65 on various topics, including plant-based nutrition, between 2 and 22 November 2021.

** The market and opinion research institute marketagent was commissioned by BILLA to conduct an online survey of 500 Austrians between the ages of 14 and 75 on their diet at the end of May / beginning of June 2022. The sample is representative of the Austrian population.