The Polish government is suspending its newly introduced retail tax, the country’s finance minister, Pawel Szalamacha, advised on September 20.
Law only came into effect earlier this month
Under the law, which only came into effect on September 1st this year, retailers in Poland would pay 0.8% on monthly revenues between PLN 17m (€3.85m) and PLN 170m (€38.55m) and 1.4% on sales exceeding PLN 170m (€38.55m) per month as initially planned. Revenues below PLN 17m (€3.85m) per month would be tax free.
Suspension follows EU probe as Poland pursues alternatives
The suspension follows an EU probe, which suggested that this tax gives Polish companies an unfair advantage over competitors, which breaches EU state aid rules. Despite this, Szalamacha advised that Poland was developing a ‘different formula’ for the tax as part of its 2017 budget.