The Slovakian government has followed the likes of Poland and Hungary in imposing a new retail levy that primarily impacts non-native operators. From 1 January 2019, chains with sales accounting for more than 10% of food sales must pay a special 2.5% levy of annual net sales. Payments are to be made quarterly, with the first due at the end of April.

Only major Western European operators like Kaufland, Lidl, Rewe Group (Billa) and Tesco qualify for the tax. All Slovakian retailers are exempt from the tax, with one exception. European trade associations are alarmed by the development and have asked the EU to investigate whether the policy is permissible under European legislation.

Source: Lebensmittel Zeitung