Tuesday, July 7, 2015

Fear of political change. Stores are gearing up for the Hungarian … – Wyborcza.biz

Stores are beginning to be afraid of changing the political situation in Poland. The governments of the coalition

PO-PSL does not bore them any special risks. Stores had only fight among themselves and lately also from deflation.

However, the fall can change power. And that can mean big trouble for them. PiS politicians do not hide that look with some sympathy towards Hungary, which retail chains have established a muzzle under the banner of support for small merchants. And in turn, the Hungarian solutions for retail scenario of a horror movie, where blood spurts around, and the network foreign bend under the weight of taxes.

The Polish Organization of Trade and Distribution, which is a lobbying organization bringing together the western chain of stores in Poland, so he ordered a consulting firm PwC report showing the potential effects of introducing similar solutions in Poland. It was assumed that the thresholds of revenues in Poland would be four times higher than their value in Hungary (many times greater our market), while thresholds for the size of the stores would remain at the same level.

What did the Hungarians?

First, it introduced a ban on trade on Sundays in the stores above 200 square meters., as well as in smaller, unless they are run by the shop owner and his family.

In Polish conditions would be quite incredible gift and premium to the valuation of an investment fund Mid Europa Partners, the owner of Żabka, where the shops are run by the agents (and thus could trade on Sunday) .

The Hungarians have adopted also – and this idea just by a lot of people can be seen as rational – the rules significantly limiting the operation of large stores on historic areas and world heritage. In such places will not be able to function at all stores with an area exceeding 2.5 thousand. sq. m facility between 400 and 2.5 thousand. sq. m will need to have the counter, where you will be sold meat (fresh and processed) and dairy products. Smaller shops will be able to operate without restrictions.

Networks to these regulations have to adapt to the end of 2017. So, as someone put themselves in such a neighborhood supermarket, simply must close it. The provisions of beating mainly in network expansion in Budapest.

How would it look in Poland? In the list of national heritage are for example the old city. In Warsaw, Krakow and Zamosc. There are also smaller shops would have to obtain the counter. A bigger? Close Up.

While limitation on historic areas mean by PwC disappearance from 2 to 10 thousand. fewer jobs, whereas a ban on Sunday trading already mean pandemonium. Employment in the retail sector could then shrink by 7 percent. This means that the job loss would affect from 62.3 to 85.5 thousand. people.

While these calculations are reliable? Law and Justice, when he ruled, Sunday trading was not limited. They decided the calculation made by the Ministry of Labour. A total ban on Sunday trading meant lower revenues to the budget of up to 1.5 billion zł. The work would lose 50-70 thousand. people. It’s mostly about women in their forties with low qualifications. They do not know the language, do not support the computer. When the markets will reduce employment, land on unemployment. Zamarłby frontier trade with Germany. With them on Sunday the shops are closed, so massively come shopping to us. Therefore, instead of the ban on Sunday trading PiS then introduced a compromise – a ban on trade in the 12 holidays a year (now it is 13 days a year).

Last seen in Europe but rather a tendency to move away from the ban on the sale of the day week. On a similar solution to wonder even the British.

It is harder to open stores here

In Hungary from January 2012 to the end of 2014 every building store with an area greater than 300 sq. m had to obtain the consent of a committee composed of representatives of the Minister of Economy and Minister of agricultural development. From 1 January this year there is a new version of that law increasing to 400 sq. M threshold from which stores subject to an additional procedure.

We are already a law limiting construction of large stores once had. During the rule of PiS, Samoobrona and LPR. The Constitutional Court overturned it.

They brought superpodatki

The Hungarians networks was prepared for a series of extra taxes. Among them is called. crisis tax. It entered into force in October 2010 and remain in force until January 2013. The tax base were net revenues from sales of products. The principle was simple – the larger the network, it also paid him more.

moving it directly on the Polish market, network with revenue of over 5.6 billion zł would be subject to tax of 2.5 percent. of revenue. This would give a total of 1.35 billion zł shops. On the other hand entities whose income does not exceed 28 million zł, would involve the 0 percent rate.

The crisis tax in Hungary concerned not only retail, but also included companies operating in the energy and telecommunications.

Viktor Orbán’s government has imposed a tax on the revenue from advertising. What does this have to do with shopping? Network just seem a lot for her, and rocketed advertising. According to PwC, increase advertising prices by 10 percent. can translate into a 1-percent. an increase in product prices.

In the network in Hungary beats a fee for the official control of food, which is commonly referred to here, “Tesco tax”. Again, the larger the network, the greater the charge.

How would it look in Poland? PwC estimates that in this respect theoretically downloaded to approx. 1.16 billion, of which large chains would pay 92 percent.

Finally networks in Hungary also have a requirement to maintain profitability (a hedge against transfers of profits). If, during two years in a row reaching loss – they have to cease trading (except for companies that are less than 4 years). In Poland in the years 2011-13 one network (PwC does not write what) suffered the loss.

How much would pay the Poles?

What would happen if all the Polish introduced similar measures?

– the fees and taxes collected on the basis of the Hungarian reach the amount of approx. 2.5 billion zł, which will reduce the amount of gain the 17 largest (selling for more than 500 million zł per year) commercial networks from 2.2 billion to 31 million zł (according to data for 2013). This will result in a reduction in corporate income tax revenue by at least 400 million zł of large-industry trade. The expected decline in sales will result in a decline in the amount paid by the trade of VAT by approx. 1.5 billion zł – says PwC.

According to the consulting firm conducted similar movements (crisis tax, advertising tax and the charge for the official control food) seemingly average household about 70 zł per year more. But? – It should be added, however, that the price increase most concerned about the segment most frequently visited by families are poor: the price of the average cart will increase by 9 zł (ie. By 4.6 per cent.), Which means an average increase burden on households by 1.6 per cent., Or the amount of 409 zł – says PwC.

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