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EU launches probe into new Polish retail tax

PR dla Zagranicy
Paweł Kononczuk 19.09.2016 12:50
The European Commission on Monday launched an investigation into a recently introduced Polish progressive retail tax, ordering Warsaw to suspend the new rules until the probe is finished.
Photo: pixabay.comPhoto: pixabay.com

Brussels is concerned the tax could favour smaller shops, and that this could be considered as state aid.

The Commission, the executive arm of the EU, said in a statement that it "has concerns that the progressive rates based on turnover give companies with a low turnover a selective advantage over their competitors in breach of EU state aid rules."

The retail tax came into force in Poland on 1 September, with the government expecting it to boost state coffers by PLN 1.6 billion next year.

The new rules brought in two retail tax rates: 0.8 percent on revenue between PLN 17 million (EUR 3.9m, USD 4.4m) and PLN 170 million a month; and 1.4 percent on revenue of over PLN 170 million a month.

The tax was proposed as part of the Law and Justice (PiS) party’s election campaign last year.

PiS politicians argued that new rules were needed to even out the chances of small businesses competing with large retail chains.

In letters sent in June and July to Brussels, Warsaw argued that the tax does not constitute state aid.

Revenue from the tax is expected to help fund several of PiS’s electoral pledges, including its flagship “500+” child benefits programme. (pk)

Source: PAP

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