Commentary V4

EC appeals EU court verdict on Poland’s retailer tax

The European Commission has appealed to the General Court of the EU regarding its verdict on retailer tax in Poland. The verdict means the Polish government has the right to tax large retail stores.

The European Commission has appealed to the General Court of the EU regarding its verdict on retailer tax in Poland. 

The appeal has not yet reached Warsaw, though it should in the next few days. Polish diplomats have already received necessary information on the matter and the Polish government has declared that it will fight for the recognition of its rights.

“There must be equal laws for everyone in the Union; it cannot be that solutions accepted in other countries are blocked by Brussels in ours,” an informant told wPolityce.pl.

On September 1st 2016, Poland introduced a retailer tax which imposed 0.8 percent revenue taxation on retailers with monthly sales between PLN 17 mln (EUR 4 mln) to 170 mln (EUR 40 mln), and 1.4 percent on shops with sales above PLN 170 mln.

In late September 2016, the EC launched its breach of EU law procedures against Poland due to the retailer tax. According to the EC, its construction favored smaller shops, which could be regarded as public aid. As a result, the EC decreed that the tax will be suspended during its review by EC officials.

The new taxation, according to the government, was meant to not only bring additional income to the state budget, but also equalize chances between large chains and retailers and smaller shops. 

It was also meant to help support Polish food producers who sell their products in local stores and small to medium entrepreneurships.

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