Poland approves new retailer tax to boost budget

Poland's parliament, led by the conservative Law and Justice (PiS) party, has passed a bill imposing a progressive levy on retailers aimed at bolstering the state budget.

The tax, one of PiS's main election promises, will boost the budget by 1.5 billion zlotys ($380 million) annually. It imposes a 0.8 percent levy on monthly revenue between 17 million and 170 million zlotys and 1.4 percent on monthly sales above 170 million.

Poland's fragmented retail market is led by the Biedronka chain, owned by Portugal's Jeronimo Martins, which competes with Germany's Lidl, UK's Tesco and France's Carrefour and Auchan chains.

The levy, which has to be approved by the president, and a bank asset tax imposed earlier this year form a package aimed at financing the government's social schemes.

The bill was passed late on Friday.