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Car sales dip limits Polish retail sales growth Thursday, 26 June, 2014

WARSAW: Poland's retail sales growth slowed to an annual 3.8 percent in May, a smaller increase in sales than economists had expected, as a tax loophole caused car sales to drop.Analysts said the sales data could increase the chances the central bank would cut interest rates.The consensus forecast for May retail sales was 6.8 percent growth year-on-year, after 8.4 percent growth in April, but car sales dropped 5 percent last month. All the other major retail- sales components rose year-on-year.A loophole in the Polish tax system allowed businesses to deduct the 23 percent VAT from company-car purchases in the first quarter. That pushed vehicle sales into the beginning of the year. The loophole only lasted through the first quarter."The demand has moved from the rest of the year to the first three months," said Piotr Bielski, the senior economist at Bank Zachodni WBK. "This is another indicator that disappoints the ...



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