The trade tax means an increase in prices in shops – POHiD alarms

The introduction of the trade tax means an increase in prices in shops – indicates the Polish trade and distribution organization. Traders are asking for postponement of the changes.

Trade tax will be another burden for retailers and it is possible that too for Poland’s wallets.

Sellers make it clear: The next burden on the industry will affect prices in stores. Entrepreneurs are taxed, but the new fee falls on the shoulders of the consumer.

Merchants: The new tax will translate into higher prices in stores

The trade tax battle has been going on for years. Poland already wanted to tax shops in 2016, but the European Commission had reservations about the structure of this tax. The Commission has pointed out to Poland that the trade tax in question may be beneficial for smaller shops, which could be considered illegal state aid.

The case was brought before an EU court which did not confirm the position of the European Commission. The Court of Justice of the EU has annulled the Commission’s decision and the tax would apply as early as 2020. However, the decision on a new fee for traders was delayed due to the pandemic. Traders can rest assured, at least until the end of 2020.

Traders believe that the new tax will be the nail in the coffin of the industry. Renata Juszkiewicz, president of the Polish trade and distribution organization, is calling on the government not to introduce a tax. He recalls that in 2021 the government has plans to introduce this sugar tax, among other things. He adds that 2020 has been extremely difficult for the industry, which has already been frozen several times by lockdown. The Sunday trade ban doesn’t help either …

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POHiD refers to the report of the Warsaw School of Economics entitled “Socio-economic impacts of the implementation of the commercial tax”. Dr. Artur Bartoszewicz, the author of the study, emphasizes that the introduction of a commercial tax could lead to an increase in sales prices and a restriction on the availability of part of the range.

The retail tax is designed in a different economic reality from the current one. We are currently dealing with the problem of increased inflation, a change in the structure of demand in trade and a significant reduction in the profitability of wide format stores.

Dr. Artur Bartoszewicz

POHiD’s Renata Juszkiewicz adds that any other tax imposed on merchants “would create a burden that the industry could not bear”.

An industry representative said the new tax introduced in recessionary conditions will result in “a drastic reduction in the profitability of managed businesses”. This threatens a wave of bankruptcies throughout the supply chain and with it an increase in unemployment.

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It will also drive up prices that will hit millions of less affluent families – adds Renata Juszkiewicz.

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