Despite all the rhetoric from PiS about only taxing large foreign owned supermarkets, the reality is becoming clear. PiS intend to apply a 2% tax to all retail businesses in Poland.
Within a few weeks, lobbyists have changed the bill and the tax for large-commerce has now become a tax for all shops: small, large and websites.
We can look forward to the destruction of the Polish online retailing sector as e-commerce companies move to the Czech Republic/Slovakia/Germany/Lithuania, while smaller shops will be devastated by having to add an extra 2% to their prices while online competitors based outside of Poland will be able to sell without the tax applied.
As we said all along, PiS will raise taxes and hurt the poorest in society that often are unable to access online shops due to a lack of internet connectivity. They will now be forced to pay 2% extra in small local shops, while those retailers will also suffer against Polish-owned but foreign-based online competition.
This law will also do nothing to 'protect' small shops, and instead guarantees that they will almost certainly lose considerable business to larger supermarkets. Paweł that owns a small corner shop is not able to negotiate prices with suppliers, but Piotr that works for the large foreign supermarket as a buyer is certainly able to squeeze suppliers further. Price increases will therefore be lower in larger supermarkets, which will help to increase sales at the expense of the small Polish businessman.
Do you remember Andrzej Duda in the presidential campaign? He went to the shop and thundered: "Polish entrepreneurship should be protected and supported by the fact that the tax burden will be borne by the big supermarket chains, which today in relation to its turnover pay peanuts in taxes".
What Duda actually meant is that Polish business will be destroyed by PiS imposing extra taxes.