European Commission rules Poland has to suspend new retailer tax | Progresiv
The European Commission has opened investigation into Poland's new retailer tax and issued an injunction stating Poland has to suspend it as sees the progressive rate of the tax and varying tax-free amounts for different-size retailers as inadmissible state aid. 
"The Commission has opened an in-depth investigation into a Polish tax on the retail sector," the statement reads. "The Commission 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 European Commission has also today issued an injunction, requiring Poland to suspend the application of the tax until the Commission has concluded its assessment," it added.
The commission is concerned that the structure of the new tax, with its progressive rates on turnover, constitute state aid for smaller retailers. "At this stage the Commission has concerns that the application of progressive rates based on turnover confers a selective advantage on companies with low turnover and therefore involves state aid within the meaning of the EU rules," the statement said.
"Poland has so far not demonstrated why larger retail operators should be taxed different from smaller players in light of the objectives of the tax on retail sales," it added.
Poland was prepared for such a possibility and will present its action plan on Tuesday during a press conference, the Finance Ministry said in response to the European Commission statement.
"The Finance Ministry was taking into account both the positive outcome, that is ending the investigation by the European Commission as well as the negative one," the ministry said. "Therefore, Finance Ministry prepared an action plan for this second possibility."
Poland introduced on September 1 a retailer tax with 17 million zlots monthly tax-free turnover and two rates, of 0.8% for turnover between 17 million zlots and 170 million zlots, and 1.4% on surplus above the 170 million sum. 2016 budget revenues were estimated by Finance Ministry officials at gross 473 million zlots envisaging implementation as of September 1.
Last week Finance Minister Pawel Szalamacha said Poland could consider adjusting its new retail tax following critical remarks from the European Commission.
Should Poland fail to provide a satisfactory explanation to Brussels, the European Commission could order Poland to amend the questionable legislation and, as a last resort, refer it to the European Court of Justice. (www.warsawvoice.pl)
