ANNOUNCEMENT 08 May 2012

In May 2012, the government of Poland announced a targeted tax change.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Official letter from the EC to Poland, Brussels 8.5.2012:
http://ec.europa.eu/competition/state_aid/cases/241630/241630_1359961_78_2.pdf


Inception date: 08 May 2012 | Removal date: open ended
Still in force

Financial grant

On 8 May 2012, the European Commission allowed Polish authorities to grant investment aid to the Mondi Swiecie S.A and the Mondi Corrugated Swiecie Sp. z o.o. The aid worth around EUR 14.14 million (PLN 51.99 million) was used to extend an existing paper manufacturing plant and to build a new cardboard boxes plant in Swiecie, the Kujawsko-Pomorskie region. The total cost of the project amounts to EUR 383.02 million (PLN 1407.02 million).
 
The two beneficiaries belong to the Mondi group - "a leading group in the paper and packaging industry, employing 29'000 employees in 103 operating sites located in 31 countries" (para. 9, letter from the EC to Poland, Brussels 8.5.2012).
 
The first part of the aid used for the extension of the existing plant will allow Mondi Swiecie to manufacture low base weight recycled containerboard, whereas the second share of the state aid will enable Mondi Corrugated Swiecie to produce corrugated board and corrugated boxes.
 
The investment aid was provided in three different forms:

  • an employment grant worth EUR 0.25 million (PLN 0.91 million) was given by the Polish authorities for 70 new positions,
  • a real estate tax exemption worth in total EUR 10.99 million (PLN 40.43 million) and
  • a corporate income tax exemption with an undetermined amount but a maximum aid intensity of 50% - EUR 2.9 million (PLN 10.65 million) have been already paid out.

 
According to the Commission, "the financial support from Poland will be given for investments resulting in the production of corrugated base paper, corrugated board and cardboard boxes. Since these products are subject to trade between Member States, the support given is likely to affect such trade." (para. 61)
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. The subsidy recipient produces an internationally tradable good. On this metric, the state aid proposed here is discriminatory.
 

AFFECTED SECTORS

 
Inception date: 08 May 2012 | Removal date: open ended
Still in force

Tax or social insurance relief

On 8 May 2012, the European Commission allowed Polish authorities to grant investment aid to the Mondi Swiecie S.A and the Mondi Corrugated Swiecie Sp. z o.o. The aid worth around EUR 14.14 million (PLN 51.99 million) was used to extend an existing paper manufacturing plant and to build a new cardboard boxes plant in Swiecie, the Kujawsko-Pomorskie region. The total cost of the project amounts to EUR 383.02 million (PLN 1407.02 million).
 
The two beneficiaries belong to the Mondi group - "a leading group in the paper and packaging industry, employing 29'000 employees in 103 operating sites located in 31 countries" (para. 9, letter from the EC to Poland, Brussels 8.5.2012).
 
The first part of the aid used for the extension of the existing plant will allow Mondi Swiecie to manufacture low base weight recycled containerboard, whereas the second share of the state aid will enable Mondi Corrugated Swiecie to produce corrugated board and corrugated boxes.
 
The investment aid was provided in three different forms:

  • an employment grant worth EUR 0.25 million (PLN 0.91 million) was given by the Polish authorities for 70 new positions,
  • a real estate tax exemption worth in total EUR 10.99 million (PLN 40.43 million) and
  • a corporate income tax exemption with an undetermined amount but a maximum aid intensity of 50% - EUR 2.9 million (PLN 10.65 million) have been already paid out.

 
According to the Commission, "the financial support from Poland will be given for investments resulting in the production of corrugated base paper, corrugated board and cardboard boxes. Since these products are subject to trade between Member States, the support given is likely to affect such trade." (para. 61)
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. The subsidy recipient produces an internationally tradable good. On this metric, the state aid proposed here is discriminatory.