Sunday, May 29, 2016

Expert: sales tax does not make sense – Money.pl

With the previous version of the tax on trading MF assumed revenues of 2-3 billion dollars per year, it already was little; now assumed to be approx. 600 million zł. What is the point of passing a national tax for the year of obtaining such a small amount? – Says Radoslaw PAP Baker, a tax expert with the Center for the Jagiellonian Club.

– This tax has been compared to the previous version of a very stripped down. Now, quite high a threshold authorizing the exemption from tax or very low tax. I resigned from taxation network as a whole. This makes most of the shops, even those belonging to the largest network, you will not pay tax or will pay very little. With the previous version of the tax ministry assumed revenues of 2-3 billion dollars per year. That was little, now would be 500-600 mln zł. What is the point of passing a national tax for the year of obtaining such a small amount? – Baker pointed out.

– It looks like so as to withdraw from the face of the idea of ​​trade tax. I have the impression that the Ministry of Finance do not really want this tax and it was from the beginning against him. In addition, the European Commission announced that it will challenge the law, if the rates are progressive. If this happens, it will be another great excuse for the government to withdraw from this tax, on the principle: we tried, but unfortunately it did not work out, Brussels banned. But this is politics, but from an economic perspective is simply no subject. About the prospects for legislative – but it’s decay law. The entire proceedings of the tax sales, lack of an official project, encryption work, negotiations with the merchants instead of the normal public consultation, and all this at the end, not the result of this virtually nothing – concluded a tax expert with the Center for the Club of the Jagiellonian University.

Project last Wednesday dealt with the Standing Committee of the RM, but it did not accept. The project, amended the nature of the legal and legislative, has to be re-discussed by the Committee; in a project to refine the RCL need for definitional issues – informed PAP CIR.

According to the draft law on sales tax, by the Ministry of Finance, tax hypermarkets is to have two rates. The first rate is expected to reach 0.8 percent. of the tax base between the amount of 17 million zł and 170 million zł. The second rate will be 1.4 percent. and it will be taxed on the excess of the tax base over the amount of 170 million zł. Ministry of Finance estimates that this year the title of this tribute to the state coffers will affect 638.1 million zł.

The project assumes that the tax will be subject to income from retail sales, ie sales made to consumers (natural persons not economic activity and the rate farmers). Revenue from retail sales will not include the VAT due. The tax base will not be included sales to traders. The project does not provide for the taxation of sales made on the Internet.

The new tax payers to be retailers making the sale of goods (goods or parts of them). The draft does not contain any specific solutions for retailers operating within the commercial networks.

Off the tax will be sale of natural gas supplied to consumers through distribution networks, water supplied to consumers by businesses plumbing; coal and other solid fuels; used for heating purposes other gaseous hydrocarbons (both spilled gas cylinders in a tax warehouse and found in household gas tanks).

In addition, the tax does not cover the sale of diesel fuels for heating purposes; drugs, foodstuffs intended for particular nutritional and medical devices reimbursed or funded in whole or in part, on the basis of separate regulations; goods sold in the provision of catering services.

The tax paid by the retailer will provide him deductible for income tax.

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