Lithuanian shoppers, who have gotten used to bargain shopping across the border in Poland, might be forced to change their habits as the Polish government considers a new tax on retailers.
Supermarket in Suvalki
© A.Dambrausko nuotr.

The government of Prime Minister Beata Szydlo has proposed a tax on retail turnover in an effort to rein in foreign companies using accounting techniques to pay less taxes in Poland.

The new tax rate is slated to be decided within a few weeks, but it is expected to be between 0.5% and 2%, lrytas.lt reports.

The new tax might cause prices in Poland's shopping centres to grow, reducing incentives for Lithuanian buyers to do their shopping across the border.

"This would definitely reduce the flow of Lithuanians going to shop in Poland. There will no longer be such a big price difference," Laurynas Vilimas, president of the Lithuanian Trade Companies Association, told lrytas.lt.

As prices of consumer goods in Poland have been significantly lower than in Lithuania, many residents of Lithuanian border regions regularly shop in the supermarkets of towns like Suvalki and Sejny.

Danish company picks 3 Lithuanian districts for wind farms

European Energy , a Danish company that is planning to build wind power farms with a total capacity...

Turto Bankas to hold workshops on vacated Lukiskes prison

Lithuania's state enterprise Turto Bankas (Property Bank) plans to hold creative workshops next...

Lithuania post's one of largest drop in agricultural output in EU

The drop in agricultural output in Lithuania in 2018 was the largest among EU member states,...

Central banker says establishing state bank would be costly

While the emergence of a new player in the Lithuanian banking market would be welcome, establishing...

Vasiliauskas calls on MPs to turn to ECB over banking tax

Vitas Vasiliauskas , board chairman of the central Bank of Lithuania , has called on lawmakers to...