EU court annuls EC decision on Poland's retailer tax

2019-05-16 11:18 update: 2019-05-16, 21:22
Photo: PAP/EPA/STEPHANIE LECOCQ
Photo: PAP/EPA/STEPHANIE LECOCQ
The General Court of the European Union has annulled the EU's decision on Poland's tax on the retail sector, the court said in a Thursday press release posted on its website.

The court ruled that the European Commission had made a mistake by considering the contested measure as state aid, the statement said  

The verdict is not final, and subject to appeal.

In September, the EC launched its breach of EU law procedures against Poland in connection with the retailer tax. According to Brussels, its construction favoured smaller shops, which could be seen as public aid. In effect, the Commission ordained the tax to be suspended for the time of its review by EC officials.

In late November/early December Poland charged the EU's decision in whole to the Court of Justice of the European Union (CJEU) accusing the Commission of erroneously qualifying the tax as public aid. Poland also accused the EC of violating EU laws in ordaining the immediate suspension of the tax's progressive scale and insufficient substantiation of its decisions on the matter.

On Thursday, the EU court found that the EC was wrong and annulled the final decision of the Commission, according to the press release.

The EU court is one of the two bodies of the Court of Justice of the European Union. (PAP)
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