On Monday 19 September, the Commission opened an in-depth investigation into a new Polish tax based on turnover that favours small businesses in the retail sector, a provision tantamount to illegal state aid as it gives certain companies an undue selective advantage over others.
Since early September, Polish legislation has required companies in the retail sales sector to pay a monthly tax based on turnover, characterised by a progressive rate structure with different brackets: - a tax rate of 0% applies to the part of the company's monthly turnover under 17 million PLN (around €3.92 million); - a tax rate of 0.8% on the part of the company's monthly turnover between PLN 17 million and PLN 170 million (approximately €39.2 million); - a rate of 1.4% on the part of the company's monthly turnover above PLN 170 million.
According to the Commission's preliminary assessment, this tax structure is unjustified. Poland has so far failed to demonstrate why the largest retailers should be taxed differently from smaller traders, it stresses in a press release.
The investigation will serve to determine whether the European institution's concerns are unfounded. The institution has called upon the Polish authorities to suspend the application of the tax pending the announcement of the results.
In July, the Commission decided that two progressive taxes based on turnover in Hungary (food chain inspection fees and tax on tobacco sales) were incompatible with the European rules on state aid. (Original version in French by Mathieu Bion)