Tax on retailers will be based on turnover

Finance Minister Paweł Szałamacha said in Poznań that a tax on large retailers will be based on the level of turnover, and the tax will have a progressive scale. "The idea which emerged, which is close to my view, is a tax on turnover with a tax-free rate," Szałamacha said. A "slight progression" will foster competition and thus "make it impossible to transfer the cost to consumers," Szalamacha said. "If the giants act aggressively, they risk losing clients to another part of the sector." PiS, the ruling party, had earlier considered imposing a two percent tax on retailers whose floor-space exceeds 250 sqm. But Szałamacha said that this criterion could "encourage attempts to circumvent the law."