Poland suspends retail tax till 2019

Poland is suspending the retail tax till January 1, 2019, the ministry of finance said in its draft bill submitted to the cabinet. This means, that the state coffers will not receive PLN 1.59 billion from the tax planned for next year. Back in 2016, Poland introduced the retail tax with two rates of 0.8 percent for turnover between PLN 17 and PLN 70 million and 1.4 percent for turnover above PLN 170 million. It was suspended in October 2016, after the European Commission launched its investigation. In July, the Commission said that it violates the bloc’s law, as the progressive revenue-based rates give low-income companies a selective advantage over their competitors in violation of EU state aid rules.