Subject: CBD: Monopoly Destroys Diversity – Austria Loses Local Jobs and Millions in Taxes!
To Whom It May Concern,
The Austrian Cannabis Association (ÖCB) represents the business interests of specialty retailers, producers, and regional organic farmers operating in the legal CBD sector. Over the past decade, our industry has invested heavily in retail locations, local jobs, and certified quality controls – and has always been fully prepared to pay appropriate tobacco taxes. Nevertheless, we are now facing an unprecedented economic collapse.
The catalyst for this crisis is the ruling of the Supreme Administrative Court on January 31, 2025. The Ministry of Finance relies on this decision to ban the commercial sale of CBD flowers in specialty shops, pushing all trade exclusively to tobacconists. However, this interpretation is highly legally questionable: the formal legal opinion compiled by Prof. Heinz Mayer concludes clearly that CBD is subject to tobacco tax laws, but does not fall under the tobacco monopoly laws. Extending the state monopoly to organic CBD is therefore unconstitutional, violates core EU free trade agreements, and is an unlawful restriction on commercial enterprise.
We kindly request you to state your ministry's or political party's official position regarding this crisis, and submit your answers to the following questionnaire:
What is your position on the fact that a single regulatory decision wipes out the entire commercial base of an industry that secures thousands of jobs and generates millions in tax revenues?
How do you assess the situation where, due to the monopoly ruling, small businesses are hit with massive retroactive tax bills while 1,000 local jobs are terminated, and consumers increasingly source products from online markets in the EU or unmonitored illicit networks?
Do you support the Ministry of Finance's legal stance that CBD falls under the monopoly, despite the expert assessment by Prof. Heinz Mayer proving this view is unconstitutional and violates EU law?
Do you consider it modern or appropriate to put a natural agricultural product like CBD flowers under a rigid state-run monopoly – especially since similar attempts in other nations (e.g. Switzerland) were dismissed by supreme courts?
How do you plan to guarantee that consumers retain access to diverse, quality-tested organic selections and expert guidance in specialty stores, rather than being forced to buy from tobacconists without product expertise?
The ÖCB advocates for a dual retail structure of specialty shops and tobacconists – convenience items at generic kiosks, premium selections and advice in specialty stores. Do you support this coexistence, similar to the wine market where supermarket boxes and boutique wines exist side by side?
Hemp has multiple applications, from smoking and wellness oils to foodstuffs, textiles, and green construction materials. Do you support a dedicated, comprehensive Cannabis Act that distinguishes between these categories and provides clear, fair guidelines?
How do you evaluate the progressive liberalization strategies of surrounding countries, such as Germany (legalization 2024), the Czech Republic, Slovenia, and Switzerland?
How do you justify the net budget deficit caused by destroying specialty shops: losing approximately €80M in previous VAT revenues compared to only €15M in future monopoly tobacco tax – a net annual deficit of around €65M for public finance?
We are convinced that Austria needs a modern, fair regulatory model that secures local jobs, supports regional farming, and retains tax revenues – rather than putting everything on the line with a legally fragile monopoly.
Sincerely yours,
The Executive Committee of the Austrian Cannabis Association (ÖCB)