EU court rules against Brussels on Polish retail tax

An EU court has ruled that the European Commission incorrectly classified a Polish progressive retail tax as state aid, according to reports.

The EU General Court has decided that “the Polish progressive tax on the retail sector was incorrectly classified as state aid by the EU Commission,” the press service of the Court of Justice of the European Union wrote on Twitter on Thursday.

The decision is subject to appeal, Poland’s state news agency PAP reported.

Brussels started a probe after voicing concern that tax rules which came into force in Poland in September 2016 could favour smaller shops, and that this could breach EU state aid rules.

The EU ordered Warsaw to suspend the tax. Poland appealed to the European Court of Justice in Luxembourg.

Warsaw accused the European Commission, the executive arm of the European Union, of breaching EU law by ordering the progressive tax to be suspended.

The tax had been proposed as part of the Law and Justice (PiS) party’s campaign ahead of its landslide win in Poland’s parliamentary elections in late 2015.

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