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Poland’s tax plan for big tech may never be implemented, says PM Tusk

Photo: PAP/Leszek Szymański
Photo: PAP/Leszek Szymański
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Poland is developing proposals for a new tax on big tech firms but the policy “may or may not” be implemented, according to the prime minister.

The mooted digital tax has already been met with opposition, with the U.S.’s nominated envoy to Warsaw saying the move would be “self-destructive” and could hurt Polish-U.S. relations.

Earlier this week, Poland’s digital minister, Krzysztof Gawkowski, said a blueprint for taxes targeting “powerful global corporations” would be tabled in the next few months. However, on Wednesday, Poland’s Prime Minister Donald Tusk downplayed the announcement, saying that Gawkowski was preparing the proposals and not the coalition government.

“These days, we have to deal with new global trends in customs and tax policy, and as such, I can only say: we may impose these taxes, or we may not,” Tusk told reporters before leaving for Ankara, where he has been meeting with Turkish President Recep Tayyip Erdoğan. Tusk leads a wide-ranging ruling coalition that governs Poland, led by his own centrist Civic Coalition (KO) party. Gawkowski belongs to the New Left, a junior member of the governing bloc.

The prime minister said he was working with Gawkowski on ideas for “serious investments in practically every field,” from the energy sector to military matters, adding that “good teamwork” was needed.

‘Poland is no-one’s fiefdom’

Speaking on Monday, the digital minister told Poland’s state news agency PAP that the proposed tax could “transfer profits from powerful global corporations” to the country’s central budget, with the income being used to support the development of the Polish technology sector.

The newly appointed U.S. ambassador to Poland, Thomas Rose, hit back immediately, saying that the idea was “not very smart,” and that President Donald Trump would “reciprocate” to any tax hikes.

Members of Trump’s administration have repeatedly described the introduction of a digital tax – as has happened in France, Italy, the U.K. and elsewhere – as unfair treatment of U.S. companies.

Responding to U.S. criticism of his nascent proposals, Gawkowski said, “Poland has the right to work on any law that is for the good of Polish citizens.”

He added: “I can’t image any diplomat treating Poland as his own fiefdom and preventing politicians from working on any given law.”
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