Polish entrepreneurs are beating the alarm in the face of government plans that can radically change the scenery of national e-commerce. The government is considering extending the retail taxation to online stores, which raises immense controversy and opposition from the industry. Business associations inform that specified a change, alternatively of supporting the budget and Polish companies, can lead to a wave of increases and a weakening of the competitiveness of home retailers. In the background of this debate, there are Chinese giants specified as Shein and the 1 who can become the biggest beneficiaries of the fresh law. For millions of Poles buying online, this could mean 1 thing – the end of the era of inexpensive buying in Polish stores and an even stronger turn towards abroad platforms.
The fresh taxation will hit Polish e-commerce? Government plans are controversial
At the heart of the dispute retail tax, which presently feeds the state budget with billions of PLN but does not include online trade. Government analyses propose that including the e-commerce sector could make additional influence. However, this thought met with an immediate and acute reaction of key business organisations, including Union of Entrepreneurs and Employers (ZPP) and Electronic Economy Chamber.
The manufacture argues that introducing a fresh fiscal burden in the current form is simply a strategical mistake. They emphasize that Polish e-commerce is 1 of the most dynamic sectors of the economy, and an additional taxation will halt its growth. Moreover, they point to the deficiency of akin solutions in another European Union countries. In their view, specified fundamental changes should be the consequence of common EU arrangements, not unilateral decisions that put Polish entrepreneurs in a worse position in the European single market.
Specific threats to Polish companies. Why do entrepreneurs protest?
The main argument of the opponents of the fresh taxation is simple and highly practical: this burden will be mostly passed on to consumers. In order to keep profitability, Polish net vendors will be forced to increase the prices of their products. A price increase, even by a fewer percent, may prove decisive for a client who present has easy access to global platforms offering goods at very competitive rates.
Small and medium-sized entrepreneurs are peculiarly threatened, who are the backbone of Polish e-commerce. Many of them operate on low margins, and an additional taxation could completely deprive them of their profits. It is these companies, frequently family, that sale their products through platforms specified as Allegro, Empik or OLXThey'll feel the most change. As a result, alternatively of supporting the improvement of national business, the fresh regulations can lead to a simplification of activity or even the closure of many Polish online shops that will not be able to compete with global players.
Shein and Temu's main beneficiaries? How Chinese Giants Can Gain
Paradoxically, the biggest government plans won could be Chinese e-commerce platforms. Giants like Shein, Temu or AliExpress they are already very popular in Poland. According to Gemius, 36% of Polish net users regularly store on abroad services. The main magnet is, of course, lower prices, due, among another things, to the fact that these platforms frequently benefit from regulatory gaps and bypass any of the taxation and customs obligations in the European Union.
If prices in Polish sellers increase as a consequence of the fresh tax, the percent of customers choosing Chinese alternatives can rapidly go up. Consumers, by price, will naturally transfer their budgets to platforms that will stay cheaper. Thus, the Polish government, wishing to increase gross to the budget, can unwittingly redirect a stream of money right into the pockets of abroad corporations, while weakening its own marketplace and home entrepreneurs. This is simply a script that the ZPP and the Chamber of Electronic Economy inform against the most.
Government appeal and proposal for a solution. What about Polish trade?
In the face of major threats, business organisations have deployed urgent call on the government to revise its plans and launch broad consultations with the industry. alternatively of introducing a taxation that will hit the competitiveness of native companies, they propose a different approach. In their view, Poland should actively work within the European Union to seal the taxation strategy and make a level playing field for all actors in the common market.
It is crucial to make solutions that will force global players outside the EU to follow the same rules as European companies. This includes effective enforcement of VAT, customs and product safety standards. Only specified actions, taken at Community level, can truly strengthen the position of Polish and European retailers. The introduction of the local taxation in the current form is, according to experts, a way to nowhere, which will bring more harm than it would do for both the economy and the portfolios of Polish consumers.
More here:
The government is planning a fresh tax. Prices in Polish online stores will go up?
