Poland reveals plans for retail tax
PR dla Zagranicy
Roberto Galea
26.01.2016 07:40
Poland's Finance Ministry has revealed the main details of its plans for a new tax on retailers, designed to raise PLN 2 billion (EUR 0.45 billion) this year, with a maximum tax rate of 1.9 percent of revenue.
Die Kritiker malen die Zukunft der Handelsbranche in Polen in dunklen Farben. Pexels.com
According to the Finance Ministry the tax will be progressive with three rates, 0.7, 1.3 and 1.9 percent, and a tax-free allowance of PLN 1.5 million (EUR 0.3 million) per month.
The tax, which was proposed as part of the Law and Justice (PiS) party’s election campaign last year, was originally meant to apply to supermarkets with a retail area of over 250 square meters before being amended to its current form.
The new proposal will see the first PLN 300 million (EUR 67 million) of monthly revenue above the allowance taxed at 0.7 percent, with anything above that taxed at 1.3 percent. A special rate of 1.9 percent will be levied on retail sales made during weekends and public holidays.
Several goods, including medicines, water and natural gas, will not be counted for the purposes of the tax.
“The retail market is saturated, to the extent that if one retailer were to raise prices this would lead to a loss of customers to other retailers. We do not therefore expect prices rises,” commented Finance Minister Paweł Szałamacha, responding to concerns that the tax would be passed on to consumers.
Revenue from the tax is expected to contribute towards funding several of PiS’s electoral pledges, including the PLN 500+ child benefit programme. The government has also previously expressed hope that this tax could help smaller retailers. (sl/rg)
Source: PAP