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BRUSSELS, June 30 (Reuters) - European Union state aid regulators on Friday said a Polish retail tax is illegal as it favoured smaller companies with lower turnover.
Under the scheme, which entered into force on Sept. 1 last year, companies operating in Poland's retail sector were set to pay a monthly tax based on their turnover.
"With this progressive tax rate structure, smaller companies would either pay no retail tax at all or face a lower average tax rate than larger competitors," the European Commission said in a statement.
The Commission opened an investigation into issue in September last year following a complaint.
As no taxes had been levied under the new rules, no repayment was necessary, the Commission, which acts as the competition supervisor in the European Union, said. (Reporting by Robert-Jan Bartunek; editing by Foo Yun Chee)